Third Supplementary Estimates Tabled; $58.2Bn More To Be Spent But More Revenues Projected

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, tabled the Third Supplementary Estimates for the fiscal year 2023/24 in the House of Representatives on Tuesday (September 26). In a statement to the House, Dr. Clarke said the estimates provide for a total expenditure of $1.094Trn, an increase of $58.2Bn over the second supplementary estimates.
He indicated that financing of the estimates is programmed from a projected $43.1Bn increase in revenues and grants. This, the Minister pointed out, will primarily comprise increased tax revenues of $35.8Bn, non-tax revenues totalling $6.1Bn, and grants amounting to $1Bn.
Clarke highlighted that the estimates reflect, among other things, allocations to facilitate the second-year implementation of the compensation restructuring for ministries, departments and agencies (MDAs) not accommodated in the second supplementary estimates.
Provisions have been made for non-debt recurrent expenditure of $719.4Bn. This includes below-the-line sums, representing an increase of $39.1Bn over the second estimates; capital expenditure of $66.6Bn, representing an $8.7-Bn reduction on the previous allocation; and debt service of $308Bn, comprising interest payments of $170Bn, which represents an increase of $14.9Bn, and amortisation payments of $138Bn amounting to an increase of $12.9Bn.
The additional $39.1Bn in non-debt recurrent expenditure is allocated as follows – $1.4Bn to recurrent programmes; $37.2Bn for compensation of employees; and $0.6Bn to other outflows, comprising loans to public bodies. He highlighted the net increase of $1.4Bn on recurrent programmes is, therefore, the end result of adjustments inclusive of $1.7Bn allocated for the holding of local government elections within the fiscal year.
The minister also pointed out that $480Mn has been allocated to the Ministry of Economic Growth and Job Creation, of which $400Mn is for social housing and $80Mn to support the trucking of water by the National Water Commission (NWC) to drought-stricken areas. He advised that $420Mn has been allocated to the Ministry of Local Government and Community Development, of which $100Mn is programmed for the cleanup of town centres, $200Mn for community roads, $120Mn for indigent housing, and $60Mn for the trucking of water.
Additionally, $1.6Bn has been allocated to support compensation restructuring payments for central government agencies as well as the Jamaica Urban Transit Company (JUTC), which will receive $472Mn, as well as $345Mn to the University Hospital of the West Indies; $395Mn to the Caribbean Maritime University; $120Mn to the Tourism Enhancement Fund; and $107Mn to the Ministry of Health and Wellness entities.
As a result of this, the Central Government’s spend for fiscal year 2023/24 is, therefore, now estimated at $1.094Trn, up from $1.036Trn. A fiscal balance surpluses of 0.3% of GDP is projected to be generated from the operations of the Central Government in FY 2023/24 and FY 2024/25. Furthermore, a debt-to-GDP ratio of 74.2% is projected for end-FY 2023/24 and is expected to continue to decline gradually throughout the medium term to target of 60.0% or less by FY 2027/28.

(Source: JIS News)