Gov’t Provides Additional Support For Health Sector, Most Vulnerable In First Supplementary Estimates

The Government will be  increasing budgetary spending by approximately $33 billion during the current fiscal year to provide additional resources to the health sector, increased support for the most vulnerable, along with funding for other critical areas of expenditure due to the coronavirus (COVID-19) pandemic.

The additional allocation increases the budget to just over $863 billion.

The details are contained in the First Supplementary Estimates of Expenditure for 2021/22,  tabled by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke,  in the House of Representatives on Tuesday (September 28).

He noted that the First Supplementary Estimates are being tabled within the context of government revenues exceeding budgetary targets by $17.3 billion for April to July 2021.

“This is reflective of the estimated robust economic growth of 12.9 per cent for the first quarter of this fiscal year, as the economy begins a strong recovery from COVID-19. Total expenditure is being increased by approximately $33 billion, while total revenues are being revised upwards by $33.5 billion for the full fiscal year,” he noted.

Dr. Clarke told the House that the expenditure increase is comprised of increases to recurrent non-debt expenditure of $27.5 billion and interest payment expenditure of $5.5 billion, with the capital expenditure unchanged from the Approved Budget.

“Of the $27.5-billion increase in recurrent non-debt expenditure, 56 per cent or $15.6 billion is being allocated to the health sector and towards support of the most vulnerable through the SERVE Jamaica Programme. As such, the full-year allocation to the SERVE… will increase from $60 billion to $75.6 billion,” he said.

The SERVE Jamaica Programme is the Government’s social and economic recovery initiative that is designed to respond to the challenges posed by COVID-19, and to facilitate a timely recovery from the pandemic and its effects.

In addition, Dr. Clarke noted that approximately $10.3 billion of this increase will be directed towards the health sector and includes $1 billion to staff, and to administer and run seven field hospitals across Jamaica; $1.4 billion to provide COVID incentive payments for health workers in contact with COVID-19 risks; $731 million to increase manpower at regional health authorities (RHAs) and settle outstanding gratuity payments; $4 billion to address outstanding arrears to suppliers of goods and services to the health sector; and $906 million to provide additional subvention support to the University Hospital of the West Indies (UHWI), inclusive of a field hospital there, among other health-related expenditures.

Dr. Clarke noted that approximately $5.3 billion will be directed towards increasing the allocation for targeted COVID-19-related social assistance to the most vulnerable and to those most affected by the pandemic.

He further disclosed that additional allocations include increases of $2.7 billion to augment the provision in the Approved Budget for public-sector wage settlements; $1.7 billion for the Police Department to address critical expenditure, including arrears to suppliers of goods and services; $1.4 billion in the subvention to the University of Technology whose reserves have been depleted by COVID-19; $1.5 billion to Ministry of Economic Growth and Job Creation, of which $1 billion is for repairs and maintenance of secondary roads.

Meanwhile, he said Capital Expenditure remains unchanged at $54.2 billion for the full fiscal year.

However, there have been reallocations within the capital budget due to implementation delays with some projects.

He said the Southern Coastal Highway Improvement Project has been allocated a further $4.5 billion from this reallocation within the capital budget.

He noted that the Ministry of Health and Wellness has reported that as at September 1, 2021, approximately 900,000 doses of vaccines, valued at approximately $2 billion, have been donated to Jamaica through bilateral arrangements with countries and through private initiatives.

He said the value of the donated vaccines is accounted for in the First Supplementary Estimates through an increase in grant resources to account for the equivalent amount of recurrent programme expenditure allocated to vaccines.

“Accordingly, $2 billion of the Government’s resources originally intended for the procurement of COVID19 vaccines has, therefore, been redirected to fund other critical needs,” he noted.

Dr. Clarke informed that the Public Administration and Appropriations Committee (PAAC) of the House of Representatives will meet soon to deliberate on the First Supplementary Estimates.