$40-Billion Support In Response To COVID-19 In 2020/21 And 2021/22

The Government delivered direct and indirect support across two fiscal years (2020/21 and 2021/22), as a response to the COVID-19 pandemic, costing $40.6 billion and representing two per cent of gross domestic product (GDP).

This was announced by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, as he opened the 2022/23 Budget Debate in the House of Representatives on March 8.

“In Jamaica, where 16 per cent of GDP goes to interest, wages and salary expenditure, which are non-discretionary expenditures, as compared to other countries in our region where the corresponding proportions are between eight per cent and 12 per cent, finding two per cent of GDP in a crisis and still remaining fiscally sound is a big deal,” the Minister said.

Citing examples of the support, Dr. Clarke said 390,000 people benefited from COVID compassionate grants at a cost of $3.9 billion and 15,000 Jamaicans working in 167 hotels and attractions received monthly stipends from the Government of $18,000 per month, over 13 months across two fiscal years, at a cost of $4.1 billion.

In addition, 40,000 Jamaicans, on Pay As You Earn (PAYE), who lost jobs during COVID, received monthly stipends from the Government of $18,000 per month, over 13 months across two fiscal years in 2020/21 and 2021/22. This was at a cost of $7.9 billion.

Some 1,718 small businesses received grants of $100,000 at a total cost of $152 million.

In addition, there were temporary waivers of duties, Special Consumption Tax and spectrum fees to facilitate the response, in addition to additional measures undertaken by the National Housing Trust and the Students’ Loan Bureau.

Dr. Clarke also informed that direct COVID-19 health intervention, in terms of additional support, has so far cost $26.4 billion.