A total of $40.7 billion has been added to the national budget for the 2024/25 fiscal year.

Finance and the Public Service Minister Dr Nigel Clarke made the announcement as he tabled the First Supplementary Estimates in the House of Representatives on Tuesday.

The additional amount largely relates to the recovery efforts from Hurricane Beryl, which impacted the island on July 3.

Of note is that the increased expenditure is entirely due to expenses on the recurrent side of the budget where both debt and non-debt expenses have increased. Recurrent programme expenses have increased by $31.3 billion, reflecting, among other things, the additional expenses undertaken to initiate recovery from the impact of the hurricane ($11.8 billion).

Also included in recurrent programmes are additional subvention amounts to a number of public bodies including The University of the West Indies; University of Technology, Jamaica; Jamaica Urban Transit Company; Montego Bay Metro Limited; National Water Commission; University Hospital of the West Indies; Transport Authority; Jamaica Agricultural Commodities Regulatory Authority; Jamaica Racing Commission; Jamaica Ultimate Tyre Company; Firearm Licensing Authority; National Solid Waste Management Authority, and other agencies under the Ministry of Local Government and Community Development.

Municipal corporations are also being allocated additional subvention amounts.

Recurrent programme increases include the provision of amounts related to the Shared Prosperity Through Accelerated Improvement to our Road Network (SPARK) programme to facilitate preparatory activities such as design and the ordering of pipes for the programme.

Additionally, wages and salaries are slated to increase by $11.6 billion, primarily due to higher-than-originally-included third-year costs under implementation of the restructured public sector compensation system.

Clarke said interest payments are estimated to be $9.6 billion greater than originally budgeted, primarily reflecting the impact of adjustments in interest rates.

“The increase in recurrent expenditure is somewhat countered by a $12.1-billion decrease in capital expenditure which represents a decrease on the contingency provision for capital programmes, given the need to accommodate spending associated with the recovery from Hurricane Beryl as well as the preparatory activities for the SPARK programme on the recurrent side of the budget,” the finance minister explained.

Clarke said the additional amounts will be financed primarily through estimated additional revenue and grant inflows of $40.2 billion, arising primarily from additional non-tax revenue flows of $33.2 billion and tax revenue flows of $5.8 billion. The increased non-tax revenue flows include the higher-than-estimated flows from securitisation of the Norman Manley International Airport revenue flows that are due to the Government. Utilisation of available cash resources of $4.4 billion will provide the additional financing required.