The government proposes to spend a total of $912 billion for the 2022/23 financial year.
This includes non-debt recurring spending of $539.5 billion; capital expenditure of $65.1 billion; and debt service of $307.5 billion.
Minister of Finance and Public Service, Dr. Hon. Nigel Clarke, made the revelation when tabling the Estimates in the House of Representatives Thursday, February 10.
Dr Clarke noted that capital expenditure would have been significantly reduced in 2020, due to the budgetary impact of the COVID-19 pandemic.
“With the economic recovery underway, we are looking to increase capital investment by 20% in fiscal year 2022/23, which, however, will still lead to a total below pre-pandemic levels. We do this to make sure the growth momentum is maintained,” Dr Clarke said.
“This represents an increase of 0.2 percentage points, as a percentage of gross domestic product (GDP). Debt service increases by 3.3% compared to the 2021/22 financial year and non-debt recurrent expenditure includes a provision to start the implementation of the competitive restructuring of civil servants’ remuneration from the central government budget “, he added.
The Minister of Finance further noted that maintaining Jamaica’s momentum required not only capital investment, but also labor investment, and that the public sector must be able to attract and retain the skills needed for the 21st century.
The government’s efforts to accelerate the pace of recovery in the 2022/23 financial year will materialize through the use of normal revenue streams to target growth-enhancing activities.