Second Supplementary Estimates for 2023/24 Tabled In the House of Representatives

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, on Tuesday (July 18), tabled the Second Supplementary Estimates for fiscal year 2023/24 in the House of Representatives.

The primary objective of the Estimates is to reallocate to individual Heads the required funds to enable payment of the compensation adjustments during the fiscal year.

In December 2022, the Government commenced implementing the Public Sector Compensation Restructure, which is still under way.

Dr. Clarke informed that given the effective implementation date of April 1, 2022, and the fact that discussions with some unions continued into the current fiscal year, it was not possible to build into each head of the 2023/24 fiscal year Budget the relevant adjustments to facilitate payment of the second-year compensation restructure amounts.

“As such, an estimated amount for the second-year payments was captured in the Contingency Head of the Ministry of Finance and the Public Service. I would like to note that only some of the Heads have been adjusted under the Second Supplementary Estimates as work continues with a number of the ministries, departments and agencies (MDAs) to ensure accuracy in determining the amounts due for compensation,” the Minister stated.

He further indicated that a number of entities are also being allocated one-off grants or additional subventions, to enable them to meet the compensation restructure payments.

Also being addressed under the Estimates are consequential adjustments arising from changes in the assignment of Subjects and Departments, Agencies and Other Public Bodies.

“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,” Dr. Clarke said.

The Estimates also provides for the addition of $8.9 billion to recurrent programmes, primarily to facilitate the payment of compensation restructure amounts as follows: $1.5 billion for the 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.

“Under recurrent programmes, the Second Supplementary Estimates also reflects the $2.7 billion in value of equipment, including taxes paid on those equipment donated by the People’s Republic of China,” Dr. Clarke said.

It 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.

“The adjustments arising from changes in the assignment of Subjects and Departments, Agencies and Other Public Bodies represent transfers between Heads, and do not result in any impact on the overall expenditure budget total,” Dr. Clarke said.

The Central Government spend for fiscal year 2023/24 is, therefore, now estimated at $1.036 trillion, up from $1.021 trillion.