The Haitian government faced a growing fiscal crisis in late 2019 as plummeting revenues from customs, taxes, and other sources made it increasingly difficult to meet its payroll obligations to civil servants, teachers, and security forces. Reports emerged of delayed salary payments across multiple ministries, adding to the dysfunction already created by the political standoff and months of protest activity.
The fiscal deterioration was severe. With large parts of the economy shut down or severely constrained for extended periods during the year, the government’s tax base had shrunk dramatically. Customs revenues, a major source of government income in Haiti, had fallen sharply as import volumes declined. The fuel subsidy cost remained high while the government’s capacity to fund it fell.
The inability to pay civil servants on time had practical consequences for public service delivery. Teachers who did not receive salaries stopped showing up to class. Health workers in public facilities struggled to maintain their commitment without regular pay. Police officers complained of delayed and inadequate compensation even as they were called on to manage a volatile security environment.
The IMF and World Bank called for urgent fiscal reform and international financial support to stabilize Haiti’s public finances, but the political crisis made implementing any coherent economic policy extremely difficult.