Third Supplementary Estimates to be tabled because of COVID-19

A third supplementary budget for the 2019/20 fiscal year is to be tabled in Parliament as the Government moves to contain the fall out resulting from the COVID-19 disease now affecting Jamaica.

The Supplementary Estimates are to be tabled around March 24 and on the following day, the various committee including the Standing Committee will examine and move to have them passed. 

“With measures announced yesterday, and late last week, we will need to make budgetary reallocation in a manner that reflects our response to date and directs available unutilised amounts to the Contingencies Fund for use during the 2020/21 fiscal year,” Finance Minister Dr Nigel Clarke told Parliament Tuesday afternoon.

Clarke said such measures will help to better prepare the country to survive the economic effects of COVID-19 in the upcoming fiscal year. 

The minister has asked that his parliamentary colleagues sitting on the Public Administration and Appropriations Committee to assist with the process.  

The minister also announced that very early in the next fiscal year, the government will be moving to table the first supplementary estimates for 2020/21.

“[This] will be geared specifically towards accommodating the expenditure side of the fiscal stimulus,” Dr Clarke said. 

In the meantime, the finance minister has announced that banks have agreed to forgo the reduction in asset tax for a year.

READ: Banks forgo asset tax cut to provide $3b for Jamaica's COVID-19 response

This will allow the government an add $3.02 billion to the $7 billion already announced as contingency to deal with COVID-19.

Clarke, in opening the Budget Debate last week, had announced that the reduction in the asset tax would have taken effect on April 1.

It was part of an $18 billion tax cut announced by the minister.

In the meantime, the Finance Minister also announced that Special Consumption Tax (SCT) will be waived on 100,000 litres of alcohol which will be donated to National Health Fund.

He said too that customs charges on liquid soaps, sanitisers, masks and gloves have been waived for 90 days.

Follow The Gleaner on Twitter and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.