Opposition raises concern over ‘under-execution’ of capital budget
KINGSTON, Jamaica — Opposition Spokesman on Finance, Julian Robinson, has expressed concern about what he describes as a consistent pattern of under-execution in Jamaica’s capital budget.
Robinson’s remarks follow a release from the Independent Fiscal Commission (IFC), which reported that only $20.1 billion was spent in the first quarter of fiscal year (FY) 2025/26, compared to a budgeted $40.5 billion.
“This follows an underspend of $19 billion on the capital budget in FY 2024/25 and an almost $9 billion shortfall in FY 2023/24,” Robinson said. “It is clear that we now have an unacceptable pattern of chronic under-execution. This will only continue unless the Government tackles the inefficiencies and bottlenecks in the public procurement system that are strangling the implementation of critical projects.”
He pointed to regional comparisons, noting that “the Dominican Republic, for example, has committed to a multi-year National Infrastructure Investment Plan of US$12 billion, of which US$9.6 billion has already been spent, with ongoing execution of major infrastructure projects across all provinces”. He added that its government had recently increased capital expenditure by 0.4 per cent of gross domestic product (GDP) to sustain investment growth.
Robinson argued that Jamaica’s situation represents a “growth-constraining concern” for the economy.
“At the very time when the Government needs higher levels of growth to generate additional revenues, the persistent under-execution of capital projects is constraining economic expansion,” he said.
Referencing the Bank of Jamaica’s forecast of two to three per cent growth for the September quarter, Robinson noted that this must be viewed in context.
“Most of that growth is simply recovery growth,” he said. “It reflects the fact that the economy contracted in the same quarter last year due to the impact of Hurricane Beryl. The real question is: what are we doing to ensure sustainable, long-term growth beyond these temporary rebounds?”
Robinson emphasised the urgency on the matter stating, “Without decisive action to reform procurement, accelerate project execution and create the conditions for higher sustained growth, the country will continue to face weaker-than-projected revenues and under-delivered promises to the Jamaican people.”
