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Finance Minister Dr. Nigel Clarke
By Lorraine Mendez
The government has shaved nearly $3 billion from the budget for the current fiscal year, set to end on March 31.
This is outlined in the Fourth Supplementary Estimates for the 2023/24 fiscal year, tabled by Finance Minister Dr. Nigel Clarke in the House of Representatives on Tuesday afternoon.
Dr. Clarke says the government is now proposing an expenditure of $1.091 trillion, a reduction of $2.5 billion.
He explained that the reduction is mainly due to estimated revenues for the fiscal year tracking lower than initially projected, prompting a shift in resources.
"In particular, where it is clear that current allocations cannot be spent over the remaining seven weeks for spending in this fiscal year, those allocations have been redirected," he pointed out.
Dr. Clarke said the fourth supplementary estimates is comprised of recurrent expenditure of $302.2 billion, up $2.1 billion from $300.2 billion.
Compensation of employees essentially remains flat at $404.2 billion, compared with $404.5 billion, while interest payments is estimated at $172.7 billion, up $2.6 billion from $117.1 billion.
Capital expenditure of $59.3 billion, is down $7.4 billion from $66.6 billion.
Dr. Clarke explained that the $7 billion reduction in capital expenditure was due to the slow pace of project implementation on some projects.
Meanwhile, the minister also tabled the Jamaica Public Bodies third supplementary estimates of expenditure.
Both documents have been referred to the Public Administration and Appropriations Committee of the House of Representatives for consideration.
JUTC boosted
In the meantime, Dr. Clarke said the government has allocated funds in the revised budget to boost the fleet of the state-owned Jamaica Urban Transit Company (JUTC).
"The deposit of just over $400 million for the 100 buses is in the fourth supplementary estimates, which means that...by June of this year, Madam Speaker, June/July, we'll have 100 new buses in the JUTC fleet right in time for back to school," he announced.