Haiti Faces Urgent Push to Rebuild Public Investment and Budget Management

An IMF assessment says Haiti’s public investment system is struggling under political instability, insecurity, weak institutions, and poor financial management, making infrastructure planning and execution highly difficult. The report recommends reforms focused on stronger budgeting, climate-resilient project planning, improved cash management, better monitoring systems, and expanded international support to rebuild transparency and efficiency.

Haiti is trying to rebuild its public investment system amid deep political instability, rising insecurity, and severe economic stress. A new assessment by the International Monetary Fund's Fiscal Affairs Department, prepared by experts Jean Pierre Nguenang, Rui Monteiro, Pierre Roumegas, and Marie-Christine Uguen, shows how difficult it has become for the country to manage infrastructure and development projects effectively. The report examines Haiti's progress since the previous 2022 assessment and outlines reforms to improve budgeting, project planning, climate resilience, and financial management.

According to the report, persistent violence and the influence of armed groups have weakened state institutions and disrupted government operations. Key ministries responsible for planning and finance have lost many experienced employees, leaving major gaps in technical capacity. Weak coordination between ministries, low domestic revenue, and dependence on foreign aid have further complicated efforts to implement development projects. The IMF also highlights outdated and fragmented digital systems that make it difficult for agencies to share information and monitor spending efficiently.

Small Reforms Showing Early Progress

Despite the difficult environment, the report says Haiti has started introducing reforms to improve the way public projects are selected and prepared. Authorities have created separate procedures for small and large projects. Smaller initiatives now require basic concept notes, while larger projects must go through detailed feasibility studies before approval.

The IMF considers this an important step toward more disciplined investment planning. However, the report notes that Haiti still lacks a permanent technical committee to review and prioritize projects systematically. Although the government has developed a prioritization matrix based on urgency and development impact, it has not yet been fully implemented.

The report also stresses the growing importance of climate resilience. Haiti remains highly vulnerable to hurricanes, floods, and environmental disasters, making climate-risk planning increasingly necessary. IMF experts recommend mandatory climate screening for major projects and the creation of a dedicated feasibility study fund supported by both the government and international partners. The goal is to ensure that future investments are more sustainable and better prepared before funding decisions are made.

Push for Better Budgeting and Spending Control

One of the report's main concerns is Haiti's large and poorly managed Public Investment Program, which contains more than 200 projects. Authorities are now trying to remove projects that lack proper studies or do not match national priorities. At the same time, the government is developing a Three-Year Investment Program framework to improve medium-term planning.

This framework is expected to strengthen budget credibility by improving estimates for project costs, timelines, and spending schedules. The IMF believes it could eventually help Haiti adopt a more reliable multi-year budgeting system. However, the report warns that these reforms will only work if ministries improve their ability to produce realistic cost projections and implementation schedules.

Cash management also remains weak. Haiti is expanding its Treasury Single Account system to include donor-funded projects to improve oversight of public funds. A pilot project with the Inter-American Development Bank has already started. Still, the IMF says cash-flow forecasting remains incomplete because many forecasts fail to include arrears, borrowing needs, and donor inflows. The report recommends wider use of the IMF's Cash-Flow Forecasting and Analysis Tool to improve liquidity management and payment planning.

Weak Monitoring and Digital Gaps

The report identifies serious weaknesses in project monitoring and public asset management. Current systems focus mostly on tracking payments instead of measuring whether projects are actually progressing on the ground. As a result, delayed or stalled projects are often not identified early enough.

To improve accountability, the IMF recommends quarterly reporting on both financial and physical progress, along with the appointment of dedicated project managers. Public asset management is also described as outdated and incomplete, with poor recordkeeping making it difficult for the government to track infrastructure and plan maintenance.

Digital fragmentation remains another major challenge. Ministries continue to use disconnected information systems that do not communicate effectively with each other. Haiti has started testing the Integrated Public Financial Management System and is designing a broader planning information system, but the IMF says long-term success will require centralized governance, interoperable systems, and stronger cybersecurity protections.

International Support Seen as Critical

The report concludes with a reform roadmap covering the years 2026 to 2028. It identifies twelve priority areas and assigns responsibilities to different government institutions. Training and capacity building are central to the strategy, especially in project evaluation, budgeting, climate-risk integration, and financial management.

International organizations, including the IMF, World Bank, and Inter-American Development Bank are expected to provide major technical and financial support. While the report acknowledges that Haiti's political and security crisis continues to threaten reform efforts, it argues that gradual and carefully planned improvements could still help create a more transparent, resilient, and accountable public investment system in the years ahead.