Gov’t Tables Trillion-Dollar Budget  

 

• The Government is proposing to spend a total of $1 trillion for the 2023/24 fiscal year. This represents Jamaica’s largest budget in history. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, made the disclosure as he tabled the Estimates of Expenditure in the House of Representatives on Tuesday, February 14.
• Clarke said the funds are allocated across the main expenditure categories and is comprised of non-debt recurrent expenditure of $665.7 billion, capital expenditure of $75.3 billion, and debt servicing of $280.6 billion. Included in the non-debt recurrent expenditure are allocations to implement the second year of the three-year public-sector compensation restructure and allocations to operationalise the Independent Fiscal Commission.
• Clarke informed that the largest single item of expenditure is the amount of $338 billion for wages and salaries, which includes provisions for the second year of implementation of the public-sector compensation restructuring.
• Debt service at 9.5% of GDP, which reflects amortisation and interest payments, mirrors action taken over prior years to reduce the debt burden. With the tabled debt service services structure, Debt to GDP ratio is projected to be down to about 74.2% at the end of 2023/2024 fiscal year.
• Additionally, Central Government revenue and grant inflows are estimated at $897.6 billion, which, alongside the above-the-line expenditure of $887.7 billion, will generate the required fiscal balance surplus of $9.9 billion or 0.3% of GDP, consistent with fiscal rules.
• The capital expenditure programme for Public Bodies is budgeted at $75.9 billion or 2.6% of GDP, with the National Housing Trust, Clarendon Alumina Production, and National Water Commission accounting for 68% of the capital expenditure.

(Source: JIS News)