Standing Finance Committee to start review of budget today
THE House Standing Finance Committee (SFC) will commence its review of the recently tabled 2022/23 Estimates of Expenditure (budget) today, starting at 9:00 am.
The budget was tabled by Minister of Finance and the Public Service Dr Nigel Clarke on February 10, following the ceremonial opening of Parliament for its 2022/23 fiscal year, which actually starts on April 1.
The early resumption of the Parliament is due to the need to complete the deliberations on the annual budget prior to March 31 when the fiscal year formally ends. In the meantime, the Auditor General’s Department has been reviewing the estimates and will report to Parliament for the benefit of the SFC, which includes all 63 MPS.
Dr Clarke has hinted that the Government does not intend to introduce additional taxation during the debate, however there are a number of concerns which have been raised since the tabling of the budget. These include the effect of inflation and the current invasion of the Ukraine by the Russian Republic.
In a release recently the Private Sector of Jamaica (PSOJ) raised the issue of public sector salary adjustments, which could risk the country’s fiscal gains. The PSOJ has also suggested that there is also a risk of interest rates increasing more than budgeted due to inflationary pressures, which could lead to debt-service costs coming in higher than budgeted.
Dr Clarke had responded that while the concern is valid, policymaking involves tradeoffs. He said that the current structure of public-sector compensation is unsustainable, and the sector has been unable to attract and retain skilled personnel with the competence needed to run a modern bureaucracy.
Following the SFC’S review of the estimates, the auditor general’s response will be sent to the SFC which will review the issues over at least two days, March 1-2, before sending its report to the House.
The budget debate will commence on March 8 with the contribution from Dr Clarke, and will continue as follows: March 10, Julian Robinson, Opposition spokesman on finance; March 15, Mark Golding, leader of the Opposition; March 17, Prime Minister Andrew Holness. It will close on March 22 with Dr Clarke.