Net Revenue Inflows from SFPBs Projected at $57 Billion

Net revenue inflows from Self-Financing Public Bodies (SFPBs) to the Government for fiscal year 2018/19 are projected at approximately $57.3 billion.

This is outlined in the 2018/19 Fiscal Policy Paper, which was tabled in the House of Representatives recently by Finance and the Public Service Minister, Hon. Audley Shaw.

The document indicates that SFPB inflows will include Special Consumption Tax from Petrojam Limited, corporate taxes, grants to support special programmes as well as financial distributions.

Public bodies scheduled to benefit from government transfers include the Students’ Loan Bureau, through allocations from the Education Tax; and Jamaica Urban Transit Company, which will be supported in acquiring spare parts, and subsidising fares.

Meanwhile, Petrojam, National Housing Trust (NHT), National Water Commission and Port Authority of Jamaica (PAJ) are the public bodies expected to account for 80 per cent of the planned capital expenditure for 2018/19, which is projected at $68.37 billion, up from $51.5 billion in 2017/18.

The NHT accounts for the highest ratio of expenditure of $33.5 billion, with which it aims to complete 4,734 housing solutions during the upcoming fiscal year.

According to the Fiscal Policy Paper, the NHT projects to spend $31.6 billion in this regard, which should account for 94 per cent of the agency’s total capital expenditure.

Petrojam, which accounts for the second highest ratio of $7.9 billion, plans to undertake activities aimed at enhancing the State oil refinery, whilst boosting marketability and containing costs.

To this end, the entity is slated to commence the construction of a Vacuum Distillation Unit, which constitutes phase one of the refinery upgrade programme and will also facilitate asphalt production.

Funds will also be spent to install new subsea pipelines and repair storage tanks.

The PAJ’s sum of $6.8 billion, which is the third highest figure, will be used to continue several developmental activities strategically aligned to the Government’s growth and employment agenda.

These include the Montego Bay cruise and cargo development; and acquisition of a Seawalk floating pier for use at Port Royal.

Additionally, the business process outsourcing (BPO) facility being constructed in Portmore, St. Catherine, is expected to be completed during the year, following the completion of a similar development in Montego Bay.

The NWC’s expenditure of $6.6 billion will be used to continue the implementation of programmes intended to reduce the level of non-revenue water generated, achieve energy and other efficiency gains, contain operating costs, and enhance revenues.

These include the Kingston Metropolitan Area Water Supply Improvement Project as well as rehabilitation works under the K-Factor Programme.