Fiscal commission validates suspension of fiscal rules by gov’t after Hurricane Melissa

Jamaica’s Independent Fiscal Commission has validated the Government’s decision to suspend the fiscal rules in the aftermath of the devastation caused by Hurricane Melissa.

Legislated fiscal targets, or fiscal rules, require the Government to meet certain specific benchmarks in the National Budget, chief among them being a 60 per cent debt-to-GDP ceiling.

The Fiscal Commission is a non-partisan oversight body mandated in law to monitor, assess, and report on the Government’s compliance with fiscal rules.

A report by the Commission said that after reviewing submissions from the Planning Institute of Jamaica and the Ministry of Finance and the Public Service, it has validated the hurricane’s estimated fiscal impact of 5.3 per cent of Gross Domestic Product over the financial years 2025/2026 to 2029/2030.

The report said this will “significantly” surpass the legislative requirements.

Under the Financial Administration and Audit Act, a natural disaster like the Category 5 hurricane that slammed Jamaica on October 28 allows for temporary suspension of the fiscal rules once the impact reaches or exceeds 1.5 per cent of GDP.

Suspension of the fiscal rules will allow the Government to prioritise its recovery, rehabilitation, and reconstruction efforts without breaching legislated fiscal targets.

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