By Latonya Linton
KINGSTON, Jamaica, (JIS) – The government is projecting spending of $1.3 trillion for fiscal year 2025/26, says minister of finance and the public service, Fayval Williams, as she tabled the Estimates of Expenditure in the House of Representatives on Thursday.
The sum, which is about the same as the 2024/25 budget, comprises recurrent expenditure of $1.197 trillion and capital expenditure of $62.595 billion.
Minister Williams said that the budget, which is the 10th laid by the current administration, has grown from the $580 billion tabled and approved for fiscal year 2016/2017.
“This growth in our budget over the ten years demonstrates the underlying strength of the policies of this government starting with the implementation of the shift away from direct, towards indirect taxation. The first manifestation of the policy was the increase in the Pay As You Earn (PAYE) threshold from $792,800 to $1,000,272 in 2016 and then again in April 2017, the threshold moved to $1.5 million,” minister Williams said, noting that the threshold was further increased to $1,700,088 in the 2024/25 fiscal year.”
Jamaica’s national budget continues firmly in the trillion-dollar range, having crossed that threshold for the first time in fiscal year 2022/23. The strength of the budget, the finance minister said, is despite the challenges of 2024/25, including drought, severe impact of hurricane Beryl, Tropical Storm Raphael and rainfall across all 14 parishes during the month of November.
“The Jamaican economy did not become resilient overnight; the Jamaican economy has become resilient as a result of the people and the sound policies of the government. These sound policies are the building blocks of this resilient foundation, that this government continues to lay as we pivot to the higher and more inclusive gross domestic product (GDP)) growth that we envision,” the minister added.
Details on allocations under the 2025/26 fiscal year expenditure will be provided during the minister’s budget presentation on March 11, 2025.
The standing finance committee is scheduled to meet from March 6 to 7 at Gordon House to review the estimates.
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