Gov't proposes budget of $1.3 trillion for 2024/25 fiscal year

By Lorraine Mendez    

 

The government is proposing to spend $1.3 trillion for the 2024/2025 fiscal year ending next March.

 

Finance Minister Dr. Nigel Clarke tabled the Estimates of Expenditure in the House of Representatives on Thursday afternoon, reflecting a slight increase over the $1.26 trillion budget for the current fiscal year.

 

Dr. Clarke said the budget will be financed by revenue and grant receipts totalling $1 trillion and loans and other financing of $0.3 trillion.

 

He also gave a breakdown of the expenditure figures. 

 

"Contributing to the $1.3 trillion expenditure profile are non-debt recurrent expenditure of $769.9 billion, capital expenditure of $80 billion, and debt service of $491.2 billion. Non-debt recurrent expenditure includes allocation for recurrent programme expenses at $327.8 billion, as well as compensation expenses at $442 billion. The compensation allocation includes an estimated amount to conclude the implementation phase of the restructured compensation system during the fiscal year," he outlined.  

 

Public sector wages and salaries are projected to represent 12.6 per cent of gross domestic product in the 2024/25 fiscal year, up from 9.2 per cent in the 2019/20 fiscal year.

 

Dr. Clarke said this increase reflects concerted efforts by the government to address what he calls historical challenges with public sector compensation.

 

He added that it is now time to turn to expenditure that will result in economic growth. 

 

"As a country, we need to be careful to ensure that sufficient resources are left for growth inducing capital expenditure for programmes that can enhance Jamaica's human capital and for social expenditure on behalf of more vulnerable members of the Jamaican society," he said. 

 

The Standing Finance Committee of Parliament will review the 2024/25 Estimates of Expenditure from March 5-7.