Gov't adds $29b to third revised budget amid Melissa fallout

 

Bracing for a major economic fallout due to the devastation caused by Hurricane Melissa, Finance Minister Fayval Williams has announced that the country's $1.3 trillion budget has been increased by a further $29 billion to deal with the recovery efforts. 

 

The Third Supplementary Estimates was tabled before the House of Representatives on Tuesday afternoon. 

 

The Finance Minister says the proposed additional spending is to deal with the extensive damage caused by the storm and to keep the government running. 

 

"In the third supplementary, Madam Speaker, is Hurricane Melissa response and relief - $29.3 billion or US$142 million. The Ministry of Economic Growth and Infrastructure Development will receive the largest share at $7.2 billion for road infrastructure and procurement of 3,300 containerised folding units of housing. The Ministry of Local Government and Community Development has been allocated $4.6 billion to help with post-hurricane relief efforts, fund the National Solid Waste [Management Authority's] pre and post-hurricane cleanup. It has gotten some support as well to the municipal corporation in that allocation," Minister Williams announced. 

 

Additionally, the Ministry of Tourism will receive $3.4 billion to support recovery of the tourism sector, and the Ministry of Water, Environment and Climate Change has been allocated $3.2 billion to continue its restoration of water and sewage networks.

 

The Ministry of Agriculture, Fisheries and Mining will also be allocated $3 billion for relief and recovery within the agriculture and fisheries sector, while the Ministry of Energy, Transport and Telecommunications will receive $1.5 billion for repairs to critical infrastructure.

 

The Finance Minister admitted that there will be a downturn in economic growth due to the extent of the damage caused by the storm, but asserted that the country will recover. 

 

Melissa, the strongest hurricane to strike Jamaica, caused an estimated US$8.8 billion, or J$1.42 trillion in physical damage. That's equivalent to 41% of the country's 2024 GDP, making it the costliest hurricane in the nation's recorded history. 

 

The Planning Institute of Jamaica (PIOJ) has projected the Jamaican economy will contract by 11-13 per cent in the December 2025 quarter, the sharpest decline since the COVID-19 pandemic. 

 

PIOJ Director General Dr. Wayne Henry has described the damage to the island as unprecedented and far-reaching, and warned that the country should brace for an increase in unemployment and weakening demand.