Thursday in press conference, economist Kesner Pharel, Chairman and CEO of the "Group Croissance" through its Observatory of the Haitian financial system (OSFH), affirmed that if the amending budget, tabled in Chambers Wednesday https://www.haitilibre.com/en/news-21155-haiti-flash-amending-budget-submitted-to-parliament-vote.html is adopted in the same terms as those developed by the Moïse/Lafontant Administration, the economic situation in Haiti could be expected to worsen because this budget reduces the investment envelope while increasing the current expenditure on functioning of the State.

The economist says he expects less wealth creation and more poverty, pointing to a 7% increase in current spending, a 3% increase in wages and 16.3% for the purchase of goods and services. He said he did not see the realization of President Moïse's promises to reduce government spending, saying future generations would pay the price.

For Pharel, the government does not seek to reduce its expenditure quoting in support of its remarks that the investment expenses according to the document deposited, are of slightly more 52 billion of Gdes while the current expenses of the State are of just over 66 billion, pointing out that of the contribution of 42 billion Gdes of international donors, the Public Treasury devotes less than 7 billion Gdes to the investment.

To better understand the situation of the amending budget, he explained that "[...] of every 100 Gdes in the State coffers, 50 Gdes will be spent to pay the employees, 29 Gdes will be devoted to the operation of the State and the 11 Gdes remain for transfers and subsidies. As regards the financing of projects, the State grants less than 10 Gdes under the terms of the amending budget."

The economist notes that in the amending budget, the growth rate of the expected gross domestic product (GDP) go from 2.2% (under Privert) to 1.1%, that inflation is revised upwards to 16.6% against 13.5%, that the ax burden rate is reduced from 14.1% to 12.4% and that net dollar reserves, which represented 4 to 5 of imports in the initial budget, will fall to only 3 months of import in the amending budget forecast.

Amending Finance Bill 2016-2017 :

https://www.haitilibre.com/docs/Projet_de_loi_de_finances_rectificative_16-17.pdf

See also :

https://www.haitilibre.com/en/news-21155-haiti-flash-amending-budget-submitted-to-parliament-vote.html

TB/ HaitiLibre