Fiscal Update Statement

The Ministry of Finance and the Public Service (“MOFPS”) released fiscal results for July 2021 this week. The Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, issued the following statement upon this release:

“The Government of Jamaica’s (GOJ’s) fiscal operations over the four month period April –July 2021 generated a primary balance surplus that exceeded the budgeted balance by $26.4 billion. Factors that contributed to this primary balance performance included actual revenues exceeding budgeted revenues by $17.3 billion  while actual expenditure was less than budget by $7.3 billion. It should be noted, however, that an underperformance of expenditure at a point in time does not reflect a reliable source of fiscal savings as the expenditure may simply be delayed.

The robust revenue performance reflects the much higher than anticipated GDP growth, recently projected by the PIOJ at 12.9% for April – June 2021 as compared with the prior year, as Jamaica commenced its economic recovery from the initial economic impact of COVID-19 in FY 2020/21.

Given this higher than programmed performance of revenues, the Government is currently in the process of formulating the first supplementary budget through which it will address critical needs of the country that have emerged since approval of this year’s budget including expenditure pressures brought on by the rise in the intensity of COVID-19 pandemic. In particular, this first supplementary budget for FY 2021/22 will address crucial financing requirements of the health sector, which are significant, as the Government continues its efforts to reduce the health impact of the pandemic on the population, as well as more targeted support for vulnerable populations among many other areas of acute expenditure needs at this time.

It is anticipated that the first supplementary budget will be tabled in Parliament by the end of September 2021.”