Revised 2024–2025 Budget: Haiti’s Emergency Response to Security Crisis

Amid rising instability and mounting economic pressures, the Haitian government, led by Prime Minister Alix Didier Fils-Aimé, has adopted a revised budget for the 2024–2025 fiscal year. Presented at a Council of Ministers meeting by Minister of Economy and Finance Alfred Metellus, the 323-billion-gourde budget—dubbed a “war budget”—aims to address the country’s deepening security, humanitarian, and economic crises head-on.

A Budget Centered on Urgency

The revised budget framework prioritizes three pillars: strengthening public security, reviving the economy, and restoring public trust in government. With major seaports paralyzed and U.S. commercial flights to Port-au-Prince suspended, the government deemed it necessary to reset its fiscal priorities.

Beyond the chronic insecurity, a spike in consumer prices during the first quarter—despite an accommodating monetary policy—also prompted the need to revise the original budget. The official document emphasizes the urgent need to realign public spending toward security, health, and social protection.

Key Economic Indicators

• Projected GDP growth: Revised downward to 0.5%, from the initial 1% goal
• Tax revenue: Expected to increase slightly, from 215.6B to 217.54B gourdes
• Tax-to-GDP ratio: Remains low at 5%
• Inflation: Recalibrated upward to 29.7%
• Net treasury issuance: Maintains previous level of 16.2B gourdes

Focus on Security and Social Protection

Security receives a significant budgetary boost, with the Haitian National Police budget increasing by 9.4%—from 35.6B to 38.9B gourdes. Funds for the Multisectoral Program for Social Stability and the Reintegration of Vulnerable Groups rise from 3.8B to 6.4B gourdes, targeting populations displaced or traumatized by violence and economic exclusion.

To stimulate domestic production, the government introduced tax incentives:

• Excise taxes on imported alcoholic beverages remain at 30%
• Local equivalents see a reduction from 15% to 6%
• Locally produced energy drinks now taxed at 10%, down from 15%

The fiscal incentive period has also been extended from 7 to 10 years for strategic investments under the Investment Code, aiming to re-anchor economic activity within Haiti.

Support for Key Sectors

New mechanisms target specific professional groups, including:

• Public school staff: Will receive government-issued debit cards
• Electoral funding: Additional credits go to the “Basket Fund” for upcoming elections and referenda
• USAID shortfall: A special budget line compensates for reduced U.S. aid, particularly in health and food security

Additional funds are allocated to newly established institutions, including the National Commission for Disarmament, Demobilization, and Reintegration (CNDDR).

Administrative Reforms

To speed up public spending execution, the government will revise public procurement thresholds and ease conditions for leasing administrative buildings