Gov't to allocate $30b to address Hurricane Melissa infrastructure damage

 

The government says it will allocate about $30 billion from its $99.7 billion capital budget to address infrastructure damage caused by Hurricane Melissa. 

 

The Category 5 hurricane caused an estimated US $8.8 billion or more than J$1 trillion in damage to national infrastructure. This represents roughly 41 per cent of Jamaica's 2024 gross domestic product (GDP) before adjustments for inflation. 

 

In addition to central government spending, self-financing public sector agencies have been allocated a combined $105 billion capital budget. This brings the total capital sector budget programmed to $205 billion, equivalent to 5.3 per cent of GDP. 

 

However, analysts are cautioning that effective recovery and economic growth will depend on the government resolving long-standing procurement challenges. They argue that unless these bottlenecks are addressed, the full capital budget may not be spent. 

 

Over the last five years, both the central government and self-financing public bodies have consistently failed to fully utilise their capital allocations. Analysts say this underperformance has been a major contributor sluggish economic growth and weaker revenue collection, underscoring the urgency of improving project execution as the country rebuilds after Hurricane Melissa.