The national budget centralized by the HAT, 100 million US dollars to do everything

All of the ministries’ investment projects will, from now on, have to be signed by the presidency. Why? Simple! Ministies are out of money, only the HAT presidency has 100 millions US dollars, gained from the trade of exploitation rights on coal reserves located in Soalala, with the Chinese company WISCO. As a result, ministries are going to be reduced to the role of proposition maker.

Propaganda

Andry Rajoelina might possibly be adopting such original governance system on propaganda purposes. For being convinced of being leading a nation like a real president, he might also have expected to make things come true during his pocket size mandate. The lack of international recognition and financial supports’ defection made the story different. Various seducing projects meant to impact on the Malagasy people’s life would had reached the table, but funds expected from the presidential plane’s sale and the pending rush of wealthy Saudi Arabian investors faded away.

The HAT leader may keep on boasting around with WISCO’s money. “Whatever the others failed to capitalize in years will be completed by us quickly”.  Public investment funds are from now on exclusively in his hands. 100 millions US dollars will be managed by the presidency which will on its own decide of what to invest in. He is expecting to capitalize his promises made during his putsch campaign, like hospitals, roads, sport facilities…and some communal electoral promises from his time as Mayor of Antananarivo, like the Coliseum in Antsonjombe.

The HAT leader’s complete control over public investments is everything but a cause for rejoices, since his regime is actually elected figure free. Madagascar has never ever had such a “strong” presidential regime. The institutional crisis is obvious. The finance law is being drafted, altered and capitalized exclusively by the HAT. The HCC is on its way to drop credit, if it intends to validate such orders granting full power to an internationally non recognized institution.

Restricted Budget

The action is economically speaking logical. The ruling power has to make sure that belts are remaining tied, on this account, centralizing the budget management is the way to control it, when the fact that no one is controlling the HAT is held as sideline. The ministries’ budget has been reduced by 40%. “Running budget and wages are not affected”, tempered Andry Rajoelina. As a matter of an example, Ambohitsorohitra reduced its own budget by a half. Potentially not enough to nip the public finances’ miserable estate in the bud.

The year 2010’s budget has been reduced from 5200 to 4300 billion of Ariary. Taxes returned merely 200 billion ariary instead of the expected 300 billions, due to the economic crisis. Reducing public investments happens to be the best of the bad solutions. The budget is already including the expenses related to the Conference, the elections in compliance with Ivato’s political deal. “The capitalization of elections and the erection of institutions are taken in account” said the HAT finance minister Rajaonarimampianina, in other words, the HAT can cope