Gov’t Tables $1.3Tn Budget for 2024/25

• The Government of Jamaica is proposing to spend a total of $1.3Tn for fiscal year 2024/25. 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 Thursday (February 15).
• Clarke said the funds are allocated across the main expenditure categories comprised of non-debt recurrent expenditure of $769.9Bn, capital expenditure of $80Bn, and debt service of $491.2Bn. Included in the non-debt recurrent expenditure are allocations for recurrent programme expenses at $327.8Bn, as well as compensation expenses at $442Bn.
• He further stated that “the compensation allocation includes an estimated amount to conclude the implementation phase of the restructured compensation system during the fiscal year. Wages and salaries are projected to represent 12.6% of GDP in 2024/25 up from 9.2% of GDP in 2019/20.”
• The budgeted amount for debt servicing includes $173.8Bn for interest payments and $317Bn for the repayment of debts that are maturing. “The repayment of debts that are maturing, otherwise known as amortisation payments, represents an increase of 128.9% over fiscal year 2023/24, primarily due to the large maturities on both domestic and external portfolios,” Dr. Clarke stated.
• With the tabled debt service services structure, Debt to GDP is on track for 72.2% by March 31, 2023, lower than the 74% previously targeted, and is projected to be 67.2% by March 31, 2025. Dr. Clarke noted that if achieved, this will be the lowest debt ratio in well over 40 years.
• Additionally, the self-financing public bodies are programmed to undertake $96.4Bn in capital expenditure during the year, mainly through the National Housing Trust at $50.7 billion, National Water Commission – $10.8Bn, Port Authority – $7.9Bn, Airports Authority of Jamaica – $4.7Bn, Petrojam – $3.6Bn, and Housing Agency of Jamaica – $3.2Bn.

(Source: JIS)