Minister of Finance and Public Service Dr Nigel Clarke on Tuesday, January 23, tabled the fourth supplementary estimates in Parliament for the financial year 2023/2024 for the central government and the third supplementary estimates for public bodies.

“As we approach the end of the fiscal year, we have taken stock of the performance trends of both revenues and expenditure. This has culminated in the need for adjustment in the existing budget for both central government and the public bodies,” Clarke explained.

The finance minister noted that the total expenditure of the fourth supplementary estimate is proposed at J$1 trillion and $91.8 billion. This is a reduction of J$2.5 billion from the third supplementary estimate.

“This reduction is mainly due to an estimated shortfall in revenues for the fiscal year as compared to the third supplementary estimate, which you would recall raised revenues,” he explained.

Clarke noted that there will be a reallocation of resources that cannot be spent in the remaining seven weeks of the 2023/2024 fiscal year to other identified activities.

“The fourth supplementary estimate is comprised of recurrent expenditure of J$302.2 billion, up J$2.1 billion from J$300.2 billion, compensation of employees centrally flat at $404.2 billion as compared with $404.5 billion. Interest payments of $172.7 billion, up $2.6 billion from $170.1 billion and capital expenditure of $59.3 billion, down, $7.4 billion from $66.6 billion,” Clarke noted.

“Amortisation of J$138.6 billion, up J$0.3 billion from J$138.3 billion and below-the-line non-debt expenditure of $14.7 billion, which is unchanged from the prior level.”

The finance minister said the reduction in the capital expenditure in the budget is mainly due to the slow pace of project implementation on some projects particularly projects that involve a lot of coordination.

Contributing to the increase in recurrent programmes are transfers to several public bodies totalling J$2.3 billion.

In addition, the National Solid Waste Management (NSWMA) is being provided with J$1.6 billion, which covers an advance of J$400 million previously provided. This allocation is aimed at settling arrears of operations until the end of the fiscal year on March 31.

The increase in the debt rates is mainly due to external variable rate debt.

The public bodies’ third supplementary estimates indicate the transfer of an additional J$3.2 billion in financial distributions to the consolidated fund and the transfer of J$2.3 billion from central government to public bodies.

Entities to receive funds from the central government are the National Water Commission (NWC), the Jamaica Urban Transit Company (JUTC), the Transport Authority (TA), the Jamaica Racing Commission, the Jamaica Agricultural Commodities Regulatory Authority, the National Export-Import Bank of Jamaica, the Students’ Loan Bureau and the Public Accountancy Board.