Haiti: Government Initiates 2025-2026 Budget Preparation Amidst Crisis

The Prime Minister has sent a framework letter to public administration spending officers to prepare the 2025-2026 budget. Between securing the territory and organizing the next elections, several billions of gourdes and dollars will need to be mobilized. Amidst a persistent security crisis and economic recession, the Haitian government has officially initiated the process of preparing the 2025-2026 budget. In this framework letter addressed to public administration officials, the Prime Minister emphasized two “non-negotiable” priorities: the restoration of public security and the organization of credible elections. These objectives, he recalled, are essential for both political stability and the recovery of the national economy. A Budgetary Effort for Elections The financing of the electoral process relies on a Basket Fund valued at 39 million US dollars by the end of November 2024, reinforced by an additional contribution of 10 million. The government plans for an additional 27.5 million dollars by September 2025 to ensure the smooth conduct of the constitutional referendum and general elections. Investments are also planned to strengthen the capacities of the Provisional Electoral Council (CEP), secure electoral materials, and train polling station agents. Security, a Factor of Production On the security front, the focus will be on rehabilitating police stations, strengthening the personnel of the Haitian National Police (PNH) and the Haitian Armed Forces (FAD’H), as well as acquiring modern equipment. The government intends to dedicate a substantial part of the investment budget to combating organized crime, enhanced control of border and port areas, and the digital modernization of security systems. An Economy in Distress On the macroeconomic front, the country is expected to record a real GDP contraction of -3.1% for the 2024-2025 fiscal year, its seventh consecutive year of negative growth. Inflation remains high at 27.2% in May 2025, directly affecting household purchasing power. For the 2025-2026 fiscal year, forecasts anticipate a fragile recovery with 0.3% growth and inflation brought down to 23.4%. Regarding public finances, revenues collected by June 30, 2025, reached 143.7 billion gourdes, representing 66% of the annual target. However, the execution rate of the investment budget remains low, at only 18.7% for the executive branch and zero for the judiciary and independent institutions. High Expectations “The Government expects unwavering commitment from everyone to build a realistic, credible budget that meets current challenges,” concludes the Prime Minister’s letter. Spending officers are, therefore, called upon to align their budget proposals with these strategic priorities, in a spirit of rigor and responsibility, in line with the April 3 agreement. The Editorial Team