The Full Story
The House of Representatives on Wednesday (July 19) approved the Second Supplementary Estimates for fiscal year 2023/24.
The primary objective of the Estimates is to reallocate to individual Heads the required funds to enable payment of the compensation adjustments during the year.
In December 2022, the Government commenced implementing the Public Sector Compensation Restructure, which is still under way.
“The Second Supplementary Estimates arise on the need to primarily move funds from the contingency account into the ministries, departments and agencies (MDAs) to make sure that the second year of the compensation restructure can be paid,” Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said.
He was speaking during the House of Representatives’ sitting on Wednesday (July 19).
Dr. Clarke said the provision represents only a partial distribution, noting that there are “some other MDAs for whom we are still dialoguing to ensure the accuracy in the calculations for the second-year payments”.
The Second Supplementary Estimates, therefore, provides for the transfer of $14.8 billion from the contingency allocation under the Ministry of Finance and the Public Service to a number of MDA Heads for Object 21: Compensation of Employees.
It also provides for the addition of $8.9 billion to recurrent programmes, primarily to facilitate the payment of compensation restructure amounts – $1.5 billion for Municipal Corporations, $1.7 billion for the National Water Commission, $750 million for the Urban Development Corporation, $445 million for the Jamaica Urban Transit Company/Montego Bay Metro, $990 million for the National Solid Waste Management Authority, $166 million for Golden Age Homes, $167 million for Poor Relief Officers/Inspectors, and $298 million for Infirmaries.
The Estimates also reflects $5.6 billion in loans to public bodies comprising working capital support of $5 billion to Petrojam and $600 million to Sugar Company of Jamaica Holdings Limited.
Under recurrent programmes, the Estimates also reflects the $2.7 billion in the value of equipment, including taxes paid on those donated by the People’s Republic of China.
The Central Government spend for fiscal year 2023/24 is, therefore, now estimated at $1.036 trillion, up from $1.021 trillion.