Austerity policy: prudent use of returns during the 1st quarter of 2010

The transition’s business is good. Despite the political and economic crisis, the HAT is making enough money to remain afloat and preserve its autonomy The results of the first quarter or 2010 are telling the story. As for taxes, the HAT Finance ministry forecasted 223.4 billions of ariary. The 97.7% effective rate returned some 228.1 billions of ariary. The custom performance was close to perfection. 98,3% of 197.6 forecasted billions of ariary have been returned. The custom taxes have provided the state with 194.3 billions of ariary during the year’s first three months.  

The state also has tax non related incomes which do not pay off that much. 6.2 billions of ariary have been returned by an 81.5% effective rate from the forcasted 7.6 billions. The foreign support’s situation is the reminder of Madagascar’s relations with its financial backers. The Finance department expected some 4.2 billions of ariary. 85.7% of the wish would have come true, providing 3.6 billions of ariary of foreign support of State chesses. In the end, the state’s jackpot would amount to 432.2 billions of ariary according to the HAT ministry’s reports. The effictive rate of 95% is being established in relation with a very austere policy.  

The civil society required transparency concerning state led expenses following some leaders’ childish exhibitions of dazzling personal wealth. The reported results of the first quarter of the year 2010 are complying with the HAT led austerity policy. The very publication of the year 2010 finance law had announced the investment of merely 10% of the budget in ministers’ activities. The figures proved it right: from the forecasted returns of 450 billions of ariary, 225 billions had to be to maximum amount of the expenses, and in the end, only 160 billions of ariary have been used.  

The leaders certainly did not tight their belts, but the rest of the island did. The running budget is only concerning the strategic expenses. 54% of the basic 139.4 billions of ariary have been saved. The HAT Finance minister drew some satisfaction from the state’s debt repay situation. But forecasts have anyhow failed from being reached. It would rather be a disappointment than a successful saving.  The interest of the foreign debt meant to be repaid during the year’s first quarter amounted to 12.7 billion of ariary. The HAT effectively repaid 7.4 billions of ariary. As for home debts, 22.3 billion of ariary have been repaid, that is to say 84.5% of forecasts.  

The first quarter’s home invests slowdown is the sign of the national economic slowdown. Only 21.5 billions of ariary have been spent, 45.5% of basic forecasts.  The HAT Finance minister argued that public investments have been far more significant thanks to foreign support. In spite of the financial blockade, some development projects are keeping going on, like the 9th FED. Various financial backers like the BAD or the World Bank have not suspended all of their projects yet. The Central Bank’s reserves would still be amounting to 800 million dollars. The situation is, on this account, in no way a pending disaster. The HAT denies any possibilty of an economic crash.