KINGSTON, Jamaica – Minister of Finance and the Public Service Dr Nigel Clarke yesterday gave two reasons for the government tabling the second supplementary estimates for the 2020/21 budget at this time.

Dr Clarke said that one reason was the favourable result that there was an over-performance of the budget, in terms of the projected revenues for the first six months of the year in closing at $8 billion, or three per cent higher than was budgeted.

According to him, however, while it was “a good place to be”, it was some 18 percent behind the intake for the same six months of the previous year.

The second reason was the nature of the COVID-19 pandemic, and its increasing intensity, which has increased the need for additional support for areas such as health, social welfare, education and economic expansion.

“It is a period like no other in Jamaica’s history. The COVID-19 pandemic has had a severe impact on the Jamaican economy,” the minister admitted.

He said that the estimates have been developed within the framework of this out-turn, as well as taking into consideration the continued impact of COVID-19.

The estimates, which were eventually approved by the House of Representatives, provides for total central government revised expenditure of $853.8 billion.

The increased primary expenditure of $16.6 billion was facilitated by $5.2 billion in additional revenue, and $11.4 billion arising from the downward adjustment to the primary balance target.

The House was asked to take note that the downward revision to the primary balance target for this fiscal year will be addressed in subsequent years, consistent with the country’s Fiscal Responsibility Law, to ensure that the 2027/28 timeline for achieving the debt/GDP of 60 percent is met.

The budget includes $1.06 billion for wage settlements at the Jamaica Civil Aviation Authority; $800 million for the police department $500 million for Tax Administration; $500 million to the Ministry of Economic Growth and Job Creation for road works, including flood mitigation/damage; and $475 million for the National Solid Waste Management Authority (NSWMA).

Other adjustments include $1.2 billion, transferred from the Ministry of Finance and the Public Service to reflect payments made in August for back to school grants to the Programme for Advancement Through Health and Education (PATH) beneficiaries; and $1.25 billion, reassigned to PATH under the Ministry of Labour and Social Security (MLSS) for its capital budget from the Ministry of Education school feeding programme to facilitate the provision of nutritional support to PATH students during the September school term.

Some $800 million was reallocated from the new social pension programme for the elderly under the MLSS due to implementation delays caused by COVID-19, and resulting in the programme being deferred to FY 2021/22. Five hundred million was reallocated within Ministry of Economic Growth and Job Creation capital programme from the Montego Bay Perimeter Road project to the Southern Coastal Highway Improvement Project and Chovey slope stabilization projects; and $344 million, transferred to Ministry of Health and Wellness recurrent to offset additional COVID-19 related expenditure from the ministry’s capital budget due to slower implementation of the Cornwall Restoration Project as a result of the impact of COVID-19; and $231 million to complete final payments on new garbage trucks acquired by the Ministry of Local Government for the NSWMA.

Balford Henry