Finance Minister Places Emphasis On Sound Public Policy

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says sound public policy must be adhered to, as it saved Jamaica from disaster at the onset of the COVID-19 crisis.

The Minister, while opening the 2021/2022 Budget Debate in the House of Representatives, on March 9, said that due to the reintegration of public bodies to parent Ministries, “we were able to harvest surplus cash”.

“For example, when we reintegrated the Petroleum Corporation of Jamaica (PCJ) into the Ministry of Science, Energy and Technology, approximately $6 billion went into the Consolidated Fund,” he added.

He said resources in excess of $25 billion were also added to the Fund as a result of the privatisation of the Wigton Windfarm and Trans Jamaica Highway, inclusive of debt by Wigton, which retired obligations to the Government.

“With close to $90 billion of cash resources, which resulted from thoughtful policy, we were better prepared for this crisis. Policy matters, and good policy matters,” the Minister told the House.

He added that good policies expand opportunities and provide flexibility when needed to respond to crises.

“We think about tomorrow as well as today, as $4 billion was tucked away in two years for contingency, over what was set aside for 30 years cumulatively. Prior to that, the Contingency Fund was at $100 million,” the Minister said.

“We remain committed to making policy decisions that allow us to prepare for unexpected shocks and disasters. That is our goal and our mission as we aim to recover faster and stronger,” Dr. Clarke added.

The Minister said the crisis caused by the COVID-19 pandemic would have been compounded if the foreign exchange reserves had not remained at the “highest levels in history”, as the country would not have been able to purchase raw materials and finished goods from overseas.