Senate Approves 2023 Appropriation Bill

The Senate on Friday (March 24) approved the Appropriation Bill, 2023, which outlines how the government will spend the $1 trillion allocated in the 2023/24 Estimates of Expenditure.

The Bill authorises expenditure for the financial year 2023/24 and stipulates how the money will be allocated to the various services and purposes of the government.

The legislation was piloted by Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, who said that the budget is “formulated to ensure achievement of the overarching medium-term debt to Gross Domestic Product (GDP) target”.

“The fiscal programme aims to support the objective of reducing the public debt and debt servicing cost, thereby creating fiscal space to facilitate growth-inducing expenditure,” Senator Hill stated.

He said that fiscal year 2022/23 has been characterized by strong economic growth, as Jamaica continued to visibly recover from the impact of the COVID-19 pandemic, as well as adapt to the international supply chain issues and associated pressure arising from the Russia/Ukraine conflict.

He pointed out that achieving the required fiscal balance and the corresponding primary balance, remains a priority of the Government, as these are the operational instruments being utilized to attain a public debt of no more than 60 per cent of GDP by the end of March 2028.

For the financial year 2023/24, fiscal surplus is budgeted at $8.66 billion or 0.3 per cent of GDP, while a primary surplus of $145.24 billion equivalent to 5.5 per cent of GDP is projected.

Additionally, Senator Hill noted that revenue and grants projection for the fiscal year, which begins on April 1, is $896.27 billion, with tax revenue projected to account for 92 per cent.

“92 per cent of the government’s expenditure comes from the economy performing properly,” he emphasized.

The main expenditure categories of the budget comprise non-debt recurrent expenditure of $665.7 billion, capital expenditure of $75.3 billion, and debt servicing of $280.6 billion.

Hailing the country’s post COVID macroeconomic achievements, Senator Hill stated that, “the Government has done tremendous work in making sure we collect more taxes, making sure we encourage companies to grow, making sure unemployment is low and making sure even in pandemic and rising inflation, the Jamaican currency has remained stable”.

In his contribution to the debate, Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Senator the Hon. Matthew Samuda said, “Jamaica is incredibly blessed”.

“We have staged a remarkable economic recovery to a series of global disasters including the COVID-19 pandemic (and) the hostilities in Ukraine which both led to global supply chain disruptions and energy price instability,” he stated.

“All of this has led to a world far less settled, far less predictable, with far greater challenges than previously contemplated by developing nations such as Jamaica,” Mr. Samuda added.

The Bill was approved in the House of Representatives on March 21, following the close of the Budget Debate.

Source: JIS