Ministry of Finance adds $ 25.8 billion to budget

Jamaica’s government added $ 25.8 billion to its recurring budget for the fiscal year ending March 2022.

Finance and Civil Service Minister Dr Nigel Clarke during the tabling of the second Supplementary Estimates for the fiscal year 2021/22 Tuesday said Much has happened in the Jamaican government since the passage of the first supplementary budget in October 2021.

The $ 28.5 billion increase in the recurrent budget includes $ 8.2 billion for non-debt current spending and $ 17.6 billion for debt service, of which $ 12.6 billion is payment. of the principal.

The increase in the allocation only concerns recurrent expenditure because the capital remains at the level of the first complement with a certain reallocation between projects.

Clarke said in the first Supplementary Estimates that there had been no final settlement with any of the public sector bargaining groups and, as such, the government’s offer of increased wages and salaries. was seized within the framework of the Contingencies activity of the Ministry of Finance and the Civil Service. Since then, 31 negotiating groups have been established.

“This is the main reason for the second supplementary estimates this fiscal year. Appropriate authorization of these payments by ministries, departments and agencies requires that the relevant allocations be made under MDA heads, hence the need for the second supplementary budget, ”Clarke said.

The first Supplementary Estimates allocated an additional $ 5 billion to the CARE component of the SERVE Jamaica program, given the continued impact of the COVID-19 pandemic, which was also factored into the Contingencies activity of the Ministry of Finance and Civil Service.

Clarke also pointed out that, also in the context of the continuing impact of COVID-19, DOJ facilitated a special employment program in December 2021 to help some of the people most vulnerable to the economic impact of the pandemic.

This required additional funding and adjustment through the second supplementary estimates.

“The healthcare sector continues to incur significant compensation expenses given the extended working hours and again indicated a shortfall on this year’s allowance. We sought to address this problem in the second supplementary estimates, ”said Clarke.

Dr Clarke said there are a number of other expenses the government is seeking to address through this supplement. These are additional requirements for the Department of National Security and Police, support for the National Solid Waste Management Authority, and bank charges related to PATH program operations.

The additional spending will be funded by $ 11.2 billion in additional revenue, $ 5.3 billion in additional loan revenue and the use of an additional $ 9.2 billion from the previous year’s treasury resources.