2022/23 Budget to Increase by $24.5 Billion  

 

• The Government’s budgeted expenditure for fiscal year 2022/23 is being increased by approximately $24.5 billion. This will push the Central Government Budget to $998.2 billion, Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, has said.
• The details are contained in the Third Supplementary Estimates of Expenditure, which Dr. Clarke tabled in the House of Representatives on Tuesday (January 31). The additional expenditure is primarily to facilitate payments under the public-sector compensation restructuring exercise, which accounts for $23.7 billion of the supplementary amount
• Interest payments are also estimated to increase by $2 billion, comprised of $1.8 billion on the external side and $200 million on the domestic side, and these primarily reflect interest and exchange rate changes.
• Capital expenditure declined by $2.3 billion and is due to the inability of the allocated expenditure to be undertaken on four projects before the fiscal year ends.
• This additional expenditure is being financed by an expected improvement of $25.4 billion on the revenue side, primarily from tax inflows. These are expected to increase by $28 billion consequent on higher growth estimates, as well as taxes from additional wages.
• Considering that increased expenditure is being financed by higher revenues, and there has been an increase in the allocation for debt payments, the Government of Jamaica is expected to remain on target to reduce debt and record fiscal and primary balance of 0.3% of GDP and 5.9% of GDP, respectively, at the end- FY2022/23. The debt-to-GDP is anticipated to fall to 87.3% of GDP by the end of FY2022/23 before falling further to 60% of GDP by end-FY2027/28.

(Source: JIS)