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The Government of Jamaica (GOJ) outlined a policy for Public Sector Transformation including the

establishment of the Public Sector Transformation Implementation Unit (TIU) in January 2017 to spearhead

implementation. The vision of a transformed public sector is a modern public service that is fair, values

people, and delivers high quality services consistently.

The transformation programme is being funded by the Inter-American Development Bank (IDB) over six

years and aims to address quality, cost, and efficiency of public services in Jamaica. The programme is

being executed by the Office of the Prime Minister and has two main components: (1) Enhancing Quality

of Public Services; and (2) Enhancing Efficiency in Public Spending.

The programme focuses on five critical areas of service delivery in the first phase. These include: (i) the

introduction of shared corporate services (SCS) in eight operational areas; (ii) wage bill management to

reduce the wage bill to GDP ratio to nine percent; (iii) human resource management (HRM) transformation;

(iv) public sector efficiency and ICT; and (v) rationalisation of public bodies.

The challenges to be addressed are: (i) the underutilization of Information and Communication

Technologies (ICT) across the public sector; (ii) cumbersome processes to access public services; (iii) a

relatively large and expensive workforce; (iv) too many public bodies in existence and lack of adherence

to the accountability framework; and (v) limited capacity to implement public sector reform initiatives.


The Financial Officer, under the direction of the Financial Specialist will be assigned financial

responsibility for supporting the effective, efficient and economical use of the TIU Project funds in the

fulfilment of its objectives and in pursuit of the implementation of the budget and loan, ensuring a high

standard of probity, propriety, regularity, transparency, accountability and value for money. The Financial

Officer Specialist is required to work closely with the Executive Director, Programme Manager, and

Procurement Specialist, and will mainly be responsible for:

 Maintaining appropriate financial and accounting systems and controls;

 Interfacing with facilitating ministries/agencies and international organizations;

 Assisting the Financial Specialist with monitoring Project activities to meet the stipulated Project

objectives, transparency and accountability requirements as they relate to the planned expenditure;

 Providing technical advice and assistance to the Financial Specialist and the Programme Manager as


 Preparing progress, annual, special and other reports as necessary;

 Maintaining an adequate budget/expenditure tracking system.


The scope of the work to be performed by the Financial Specialist will include:

 Maintaining adequate financial, accounting, and internal control systems to ensure the integrity,

June 12, 2021

Page 65

Ministry of Finance and the Public Service Fiscal Policy Paper 2017 62 | P a g e

Capital Expenditure Capital Expenditure is budgeted at $49.282 billion, an increase of $4.480 billion, or 10% over the 2016/2017 Revised Estimates of $44.801 billion. This level of capital spending represents 2.6% of GDP, up from 2.5% in FY 2016/17.

Spending on Capital A projects (financed by local resources only) amounts to $12.246 billion or 24% of the total Capital spending. The Ministry of National Security has been allocated $3.0 billion or 24% of the total Capital A budget while $1.3 billion or 11% has been allocated to the JUTC received for the purchase of spare parts for the maintenance of its fleet of buses; and $1.5 billion as a loan to the Port Authority of Jamaica to support the establishment of BPO facilities in Montego and Portmore.

Approximately $37 billion or 75% of the overall 2017/18 capital budget will be spent on Capital B projects (financed with support from multilateral/bilateral sources). Of this sum, approximately 50% or $18.518 billion, the largest share of the Capital Budget, has been allocated to the Ministry of Economic Growth and Job Creation.

Social Programmes Social programmes for protected groups will continue to receive priority with respect to the allocation of resources, to ensure that overall spending in these areas is not eroded by inflation. Included are programmes for youth employment, poor relief, children homes and places of safety, school feeding, and the PATH programme targeting the elderly, pregnant and lactating women and children attending school.

To facilitate improved benefits under the PATH Programme in FY 2017/18, an additional $3.68 billion has been allocated, bringing the total provision to $11.47 billion, an increase of 47% over the provision in 2016/2017. The increase is allocated as follows: (i) PATH School Feeding Programme - $1.75 billion; (ii) PATH Cash Grants - $1.9 billion.

Debt Servicing

Total provision for Debt Service is $310,401.0mn, or 43.7% of the budget, compared to 41.9% in FY 2014/15 (Debt Service spiked in FY 2015/16 at 58.3% of budget due to the Petrocaribe liability management exercise). Interest payments are budgeted to fall by 1.7% over the outturn for FY 2016/17 to $137,852.9mn (7.3% of GDP). Domestic Interest costs are budgeted to rise 0.7% to $62,903.4mn, while External Interest costs are budgeted to fall by 3.5% to $74,949.5mn.

The significant rise in budgeted amortization is due largely to maturing Benchmark Instruments (BMI) in the domestic debt as well as maturing Eurobonds (bullet payment) in the external debt. The marginally higher Domestic Interest payments are reflective of the GOJ’s re-entry into the domestic market since February 2016. Notwithstanding, Domestic Interest costs are budgeted to fall from a projected 3.6% of GDP in FY 2016/17 to 3.3% of GDP in FY 2017/18.

June 12, 2021

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Head No. 28033 and Title: Office of the Parliamentary Counsel






10005 Direction and Administration 76,822.0 4,000.0 72,822.0 Revised requirement

Reduction 21 Compensation of Employees 4,000.0

TOTAL HEAD 28033 125,215.0 - 4,000.0 121,215.0



Activity/ Project


Service & Object of Expenditure

Approved Estimates 2020/2021

Approved New

Estimates Remarks & Object Classification Provided

by Law (Statutory)

Supplementary Estimates

Savings or Under


28033 - 1

June 12, 2021

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Accelerating Debt Repayment & Primary Balance Reduction Mr. Speaker as I said earlier, there is much the Opposition Leader said that I could respond to. The traditional debate has been superseded by the urgency and threat of the COVID-19 pandemic and its effects. However, there is a thread put forward by the Opposition Leader to which I must respond. Mr. Speaker, the one-sidedness of the Opposition Leader seeking to take credit for the GCT rate cut, having never credibly postulated how it could be afforded in a tight fiscal environment, while pounding the table on fiscal responsibility, is rather amusing. Recall that Dr. Phillips proposed a 2% reduction in the rate of GCT, which would have cost $20 billion, but it is difficult to recall any proposal from him to credibly explain how it could be sustainably financed. That, Mr. Speaker, was not responsible. It is therefore ironic that they could believe that he is in any position to provide a critique when, in fact, it was thoughtful, strategic, and coordinated action over two years, by this Government, that provided the resources for an unprecedented debt repayment of $73 billion or 3.3% of GDP as the route to sustainably achieve a fiscal stimulus that includes a 1.5% reduction in the GCT rate, and more. Take note that his speech makes no reference to the “$73 billion repayment of debt” specifically as the counterbalancing measure for the “primary balance reduction”. This is the first sign of a biased account constructed to launch the kind of attack and misinformation campaign that many now see as their unfortunate trademark.

If you read or listened to his speech you would think that the only thing done was a reduction of the primary surplus from 6.5% to 5.4%. It is a superficial, biased, and frankly disappointing approach from a former Minister of Finance to omit substantial and relevant information.

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The only good thing is that many persons heard me say that it is a historic debt repayment of $73 billion or 3.3% of GDP which created the space for a reduction in the primary surplus. Intuitively it is not difficult to understand the relationship between accelerating the pay down of debt and therefore requiring less each year for debt payments thereafter as a result. You can consider the analogy of someone having a mortgage outstanding of years that requires a certain monthly payment. If after half the time has gone you make an accelerated repayment against the outstanding principal then you could be allowed to pay a reduced monthly payment thereafter. It is the same principle here. If someone were to go to a cocktail party and criticise the person saying, imagine how you reduce the amount of the monthly mortgage and did not at the same time mention the fact that you had also responsively and creatively paid down on the principal outstanding you would say they are either mischievous, deliberately misleading, or manifestly unfair, Mr. Speaker. Or all three! But the Jamaican people read and listen and they understand much more than we realise, Mr. Speaker. Jamaicans are no longer fooled by one-sided accounts that leave out material information.

We need to lift and enrich the public’s understanding of the full truth, rather than use partial information in an attempt to score cheap points. Another misleading claim was that the previous Government started our whole fiscal adjustment process. The inconvenient fact is that the fiscal adjustment process started in 2010. That is when Fiscal Rules were first passed, when burdensome state assets were sold, and when the first debt exchange occurred. That the process in 2010 encountered challenges is also a fact. Facts matter, Mr. Speaker.

June 12, 2021