Minister of Finance and the Public Service, Dr Nigel Clarke, is urging ministries, departments, and agencies (MDAs) to exercise prudent management of overtime budgets.

Addressing the Standing Finance Committee reviewing the First Supplementary Estimates for fiscal year 2024/25 in the House of Representatives on Tuesday (October 15), Dr. Clarke said the way in which compensation arrangements exist now and going forward will require much greater management by MDAs of their budgets, particularly in relation to overtime.

“If Ministries and Agencies don’t manage their human resources in a way to keep within budgetary limits, we can have a major problem. We are moving from a dispensation where people got allowances for overtime regardless of whether they worked overtime or not… to one where you get paid for the hours that you work, generally speaking,” he stated.

Dr. Clarke said that is the recommended and modern practice, “but if that is not accompanied by management of the human resources, those numbers can get out of hand.”

“So, it is incumbent upon all ministries, departments, and agencies, not just the Ministry of Finance, to ensure that overtime budgets are managed properly,” he underscored.

The first Supplementary Estimates for fiscal year 2024/25 include the final elements of the public-sector compensation restructuring exercise, which the government has completed.

The exercise was intended to overhaul the structure of salaries and other emoluments in the public service to make them more equitable.

The Supplementary Estimates, which were approved by the House on Tuesday, provide for an increase in total government budgeted expenditure and payments for fiscal year 2024/25 by approximately $40.7 billion, to $1.38 trillion.