Belize and bondholders find common ground:
Each year the Government makes known its plans for economic and social development for the country, through its budget.
7he budget, according to &hief Executive officer, private Sector Organisation of Jamaica, Dennis Chung is “a provision and projection of what we [Jamaica] expect to receive in terms of income and what we expect to spend in terms of expenses for the coming year.” To open the discourse, the Minister of Finance and the
3ublic Service, +on. $udley Shaw, on February , tabled the Estimates of Expenditure which is a detailed outline of monetary allocations to ministries, departments and agencies as well as for projects.
$ budget of billion for the ¿scal year was presented, with billion allocated for recurrent expenses and billion for capital spending. These expenses are categorized into two areas namely: the recurrent and capital accounts. The recurrent account represents the cost of maintaining the permanent administrative structure of government while the capital account is the cost of maintaining the national infrastructure, and implementing projects that enhance the country’s ability to pursue growth and development. it this stage, Government’s expenditure and revenue estimates are submitted for parliamentary approval at the start of each financial year, which lasts from April to March of the following calendar year. They react Government’s development policies and priorities. On February , March and March , the Standing Finance Committee SFC of the +ouse of 5epresentatives met to review these estimates.
SOURCE OF FUNDS
Mr. Chung explains that the budget is funded primarily through taxation and fees. “These include property tax, income tax, General Consumption Tax, statutory taxes. ,t is also funded through non taxation measures such as capital payments that come in, or grants that we get from multilateral organisations and loans (also referred to as debt),” he says. It is of utmost importance for citizens to gain an understanding and appreciation of how the budget directly or indirectly affects them as many of the services that they rely on such as security, health, education and infrastructure are ¿nanced by the budget. In his Throne Speech on February , Governor General, +is Excellency the Most +on. Sir 3atrick $llen, outlined that the Government will increase benefits under the programme of advancement through health and Education (3$T+) to over 380,000 Jamaicans. In the Estimates of Expenditure, over billion has been set aside for the Citizen Security and Justice programme (CSJ3) III to undertake crime and violence prevention initiatives in targeted communities. The programme is being funded by the Government, the United Kingdom Department for International Development Global $ffairs Canada and the Inter $merican Development Bank. In the meantime, a total of million has been allocated to carry out activities to support law and order, which is high on the Government’s agenda. $nother . million has been budgeted to strengthen the Justice, Security, $ccountability and Transparency (JSAT)
3roject which falls under the Ministry of 1ational Security and is being funded by the European Union. Some million has been allocated for a project to enhance the resilience of the agricultural sector and coastal areas. The project aims to protect livelihood and food security in vulnerable communities by improving land and water management for the agricultural sector; to strengthen coastal protection; and to build institutional capacity against climate change risks. The Government has also earmarked . million towards the strengthening of health systems in Jamaica, with the specific objective being to craft a comprehensive year Strategic Development 3lan for the health sector, as part of the integrated health service delivery framework. Meanwhile, persons with disabilities will benefit from million under the Social and Economic Inclusion of persons with Disabilities. The project is being implemented by the Ministry of Labour and Social Security, with funding from the International Bank for reconstruction and Development.
NATIONAL DEBT
is of $pril , a new definition of public debt will become effective. according to Minister Shaw, public debt will be defined as the consolidated debt of the specified public sector net of the cross holdings of debt, expect that of the Bank of Jamaica. The national debt impacts Jamaica’s prospects for economic development in many ways. Debt service payments reduce the funds available to the Government to address development challenges, in areas such as education, security, health and infrastructure. To this end, in the Estimates of Expenditure just over billion has been set aside for the repayment of loans to several bilateral and multilateral institutions. These loans covered ¿nancing in the health, education, agriculture and mining sectors and also helped to fund capital, infrastructure and social development projects. On Thursday, March , Minister Shaw will open the budget debate. The Opposition Spokesman on Finance, Dr. the +on.
Peter Phillips, will give his response on Tuesday, March ; while the Leader of the Opposition, the Most. +on. Portia Simpson Miller, will make her contribution on Tuesday, March .
3rime Minister the Most +on. $ndrew +olness, will make his contribution on Tuesday, March before Minister Shaw closes the debate on :ednesday, March . Source: Jamaica Information Service. The Government of Jamaica. Kingston: Jamaica Information Service, n.d. Print.