Finance Minister Tables Fourth Supplementary Estimates

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, tabled the Fourth Supplementary Estimates for fiscal year 2023/24 in the House of Representatives, on Tuesday (January 23).

The Fourth Supplementary Estimates proposes a total expenditure of approximately $1.091 trillion, a reduction of $2.5 billion on the approved Budget, following the submission and approval of the Third Supplementary Estimates in September 2023.

In a Statement to the Lower House, Dr. Clarke informed that the reduction in the Budget is mainly due to an estimated shortfall in revenues for the fiscal year, as compared with the Third Supplementary Estimates, which raised revenues.

“The fourth supplementary estimates provide for the reallocation of resources from currently identified activities to other activities, in particular where it is clear that current allocations cannot be spent over the remaining seven weeks for spending in this fiscal year,” he stated.

The Fourth Supplementary Estimates is comprised of recurrent expenditure of $302.2 billion, up $2.1 billion from $300.2 billion; compensation of employees remains flat at $404.2 billion, as compared with $404.5 billion; interest payments of $172.7 billion, up $2.6 billion from $117.1 billion, and capital expenditure of $59.3 billion, down $7.4 billion, from $66.6 billion.

It also includes amortistion of $138.6 billion, up $0.3 billion from $138.3 billion and non-debt expenditure of $14.7 billion, which is unchanged from the prior level.

“Please note that the reduction in the capital Budget is due to the slow pace of project implementation on some projects, particularly those that involve lots of coordination, among many activities, and lots of moving parts, and that has resulted in the inability to utilise the full allocations during the year,” Dr. Clarke said.

Contributing to the increase on the recurrent programmes are transfers to several public bodies for a total of $2.3 billion.

In addition to that amount, the National Solid Waste Management Authority (NSWA) is being provided with $1.6 billion, which covers an advance of $400 million previously provided.

“This amount is to settle arrears and to support operations until the end of the fiscal year,” Dr. Clarke said.

There is also an increase in debt service of a total of $3 billion, which is mainly due to higher interest rates on external variable rate debt.

Under the Fourth Supplementary Estimates, the targeted fiscal balance of 0.3 per cent of gross domestic product (GDP) remains the objective, as the Government continues its efforts to meet the medium-term debt-to-GDP target of 60 per cent by fiscal year 2027/28.

The Third Supplementary Estimates for Public Bodies for the fiscal year ending March 2024, was also tabled.

“The public bodies Third Supplementary Estimates indicate the transfer of an additional $3.2 billion in financial distributions to the consolidated fund and the transfer of $2.3 billion from Central Government to public bodies,” the Finance Minister stated.

Entities to receive funds from the Central Government are the National Water Commission, the Jamaica Urban Transit Company, the Transport Authority, the Jamaica Racing Commission, the Jamaica Agricultural Commodities Regulatory Agency, the National Export/Import Bank of Jamaica, the Students’ Loan Bureau, and the Public Accountancy Board.