Gov’t Reveals $1.3 Trillion Budget for Fiscal Year 2024-2025

Jamaica’s Finance and Public Service Minister, Dr. Nigel Clarke, has unveiled the government’s ambitious $1.3 trillion budget for the upcoming fiscal year 2024-2025.

The announcement came as Clarke presented the 2024-2025 Estimates of Expenditure to the House of Representatives on Thursday.

Clarke emphasised the magnitude of this budget, noting that Jamaica’s national budget has now firmly entered the trillion-dollar range.

The financing for this budget will come from a combination of revenue and grant receipts totaling $1 trillion, with an additional $0.3 trillion sourced from loans and ‘other financing.’

Of particular note is the government’s acknowledgment of maturing debt, which stands at $317 billion for the year 2024, a substantial increase from the $125 billion matured in 2023.

This inclusion in the expenditure figure underscores the government’s commitment to transparency and accountability in financial planning.

Clarke further highlighted that non-debt expenditure is set to rise significantly, reaching approximately $849.9 billion, marking a 10.9% increase compared to the Fourth Supplementary Estimates for 2023-2024. 

A breakdown of the expenditure profile reveals that non-debt recurrent expenditure accounts for $769.9 billion, with capital expenditure set at $80 billion, and debt service at $491.2 billion.

Notably, a substantial allocation of $442 billion is earmarked for compensation expenses.

Wages and salaries are projected to represent 12.6% of GDP in 2024-2025, a significant increase from 9.2% in 2019-2020.

Minister Clarke underscored that this allocation exceeds actual compensation for the year before the restructuring began by approximately $200 billion.

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