COVID fight gets billion-dollar boost

Finance Minister Dr Nigel Clarke tabled a supplementary Budget on Tuesday that will increase spending by roughly 4.0 per cent mainly to combat the spread and impact of the coronavirus pandemic.

The increase in the Budget equates to about $36.5 billion, of which more than half will go towards fighting COVID-19.

“A major focus of the Supplementary Estimates is addressing the intensification of COVID-19 by providing additional resources to the health sector, increased resources to the most vulnerable, along with increased funding for critical areas,” stated Clarke in his address to Parliament.

The Budget now totals $867 billion for fiscal year 2021-22. It comprises the recurrent budget of $813.1 billion and capital at $54.2 billion. The entire increase relates to rises in the recurrent budget while the capital budget remained unchanged.

Recurrent expenses cover items such as wages and stationery supplies. Capital spending entails expenditure on new projects such as roadworks.

Clarke explained that roughly half of the rise in the recurrent budget, or $15.6 billion, will be allocated to the health sector and to the most vulnerable through the SERVE Jamaica programme.

The full-year allocation of the SERVE programme will rise from $60 billion to $75.6 billion.

SERVE represents the Government’s branded response to the pandemic, which addresses health and socio-economic problems.

Although the capital budget remains unchanged, funds will be shuffled from the Ministry of Finance towards the Ministry of Economic Growth and Job Creation, Ministry of National Security, and Office of the Prime Minister. On the ground, there will be a greater presence of roadworks.

“The Southern Coastal Improvement Project has been allocated a further $4.5 billion from the allocation within the capital budget,” Clarke said.

The Government also received some 900,000 doses of coronavirus vaccines as donations from other nations. The Government accounts for these donations as grants, which it valued at the equivalent of $2 billion.

“Accordingly, $2 billion of the Government’s resources originally intended for the procurement of COVID-19 vaccines has been redirected to other critical needs,” the finance minister said.

Earlier in September, Clarke noted that revenues exceeded budgeted targets by $17.3 billion for the four months April to July 2021. This comes within the context of better-than-projected gross domestic product growth over the June quarter of 12.9 per cent compared to the corresponding period last year.

Budget highlights

* 2021-2022 - $867.3b, comprising recurrent at $813.1b and capital at $54.2b.

* SERVE Jamaica programme - $60b to $75b.

* Increased support for the most vulnerable affected by COVID-19 at $5b.

* Administration of hospitals (additional) - $1b.

* COVID-19 incentive payment for health workers - $1.4 billion.

* Increased manpower at regional health authorities and settling gratuity payments at $730 million.

* Subvention support for The University of the West Indies at $900 million.

* Subvention to The University of Technology because of depletion of resources attributed to COVID-19 at $1.4 billion.

* Public-sector wage settlements at $2.7b.

* Payment of goods and services and arrears within police department at $1.7b.

* Increased resources to Ministry of Economic Growth and Job Creation to support growth at $1.5b.