Durrant Pate/Contributor

Jamaica’s national budget for the current 2023/2024 financial year has risen to J$1.036 trillion, up from J$1.021 trillion for the 2023/2024 financial year.

This represents an overall increase of J$14.5 billion, as reflected in the second Supplementary National Budget, which was tabled in Parliament on Tuesday (July 18).

Finance Minister Dr. Nigel Clarke, who tabled the revised national budget, explained that the J$14.5 billion increase will be financed from an estimated J$9.0 billion higher than programmed revenue flow and utilisation of prior year cash resources to finance the public bodies’ loans. 

Dr. Clarke told the House of Representatives that the public bodies supplementary reflects the changes in respect of the self-financing entities being assisted by the Central Government as well as relevant adjustments to the assignment of subjects and departments, agencies and other public bodies.

Changes in allocations

He advised the House that the Second Supplementary Estimates therefore provides for the transfer of J$14.8 billion from the contingency allocation under the Ministry of Finance and the Public Service to a number of ministries, department and agencies (MDA) heads for Object 21: Compensation of Employees and the addition of J$8.9 billion to recurrent programmes primarily to facilitate the payment of compensation restructure.

These amounts are as follows: 

i. J$1.5 billion – Municipal corporations, mayors and councillors; 

ii. J$1.7 billion – National Water Commission; 

iii. J$750 million – Urban Development Corporation; 

iv. J$445.25 million – JUTC/Montego Bay Metro;

v. J$990 million – NSWMA; 

vi. J$166.74 million – Golden age homes; 

vii. J$167.89 million – Poor relief officers/inspectors; 

viii. J$298.80 million – Infirmaries. 

Under recurrent programmes, the Second Supplementary Estimates reflects the J$2.7 billion value of equipment (including taxes payable by the GOJ) donated by the People’s Republic of China. Clarke told the House that this value is also captured on the revenue side of the budget under grants.

J$5.6 billion in loans to public bodies 

He pointed to the provision of J$5.6 billion in loans to public bodies, comprised of J$5.0 billion to Petrojam, as working capital support and J$600 million to Sugar Company of Jamaica Holdings Limited also as working capital support. The adjustments arising from changes in the assignment of subjects and departments, agencies and other public bodies represent transfers between heads and do not result in any impact on the overall expenditure budget total. 

The finance minister highlighted that some of the budgetary adjustments are due in part to the Public Sector Compensation Restructuring, which commenced in December 2022 and is still continuing into July. He explained, “the primary objective of the FY 2023/24 Second Supplementary Estimate is therefore to allocate to individual Heads, the required funds to enable payment of the compensation adjustments due during the fiscal year.”

Dr. Clarke noted, “only some of the Heads have been adjusted under the Second Supplementary Estimates as work continues with a number of the MDAs to ensure accuracy in the determination of the amounts due for compensation. Madam Speaker, a number of entities are also being allocated one-off grants or additional subvention, to enable them to meet the compensation restructure payments.”

Also being addressed under the Second Supplementary Estimates are consequential adjustments arising from changes in the assignment of subjects and departments, agencies and other public bodies.