Tuesday March 10, 2020 The Hon. Nigel Clarke, DPhil., MP Minister - PDF document

OPENING OF THE 2020/21 MINISTRY OF FINANCE AND THE PUBLIC SERVICE BUDGET DEBATE Moving in the Right Direction Tuesday March 10, 2020 The Hon. Nigel Clarke, DPhil., MP Minister of Finance and The Public Service

OPENING BUDGET MINISTRY OF FINANCE AND PRESENTATION THE PUBLIC SERVICE Moving in the Right Direction Tuesday 10, March 2020 The Hon. Nigel Clarke, DPhil., MP Minister of Finance and The Public Service

1.0 INTRODUCTION ........................................................................................................................5 1.1 SALUTATIONS & EXPRESSIONS OF GRATITUDE.....................................................................5 1.2 B ROAD C ONTEXT ........................................................................................................................................5 1.2 G RADUATION FROM IMF P ROGRAMMES ................................................................................................9 2.0 OVERVIEW OF THE ECONOMY .......................................................................................... 11 2.1 G ROWTH FOR 2019/20 ........................................................................................................................11 2.2 S ECTORAL G ROWTH C HALLENGES .......................................................................................................17 2.2.1 Agriculture..........................................................................................................................................18 2.2.2 Mining Sector.....................................................................................................................................18 2.3 C OMPARING G ROWTH A CROSS P ERIODS .............................................................................................19 2.4 A NALYSING I MPACT OF M INING ON G ROWTH ....................................................................................21 2.5 H ISTORIC P ERIOD OF C ONSECUTIVE Q UARTERLY G ROWTH ...........................................................21 2.6 F URTHER H ISTORICAL P ERSPECTIVE ON G ROWTH ...........................................................................21 2.7 F ISCAL P OLICY AND G ROWTH ...............................................................................................................23 2.8 G ROWTH FOR 2020/21 ........................................................................................................................28 2.9 R EVENUE P ERFORMANCE .......................................................................................................................28 2.10 C APITAL E XPENDITURE E XECUTION .................................................................................................29 2.11 E MPLOYMENT ........................................................................................................................................30 2.12 E MPLOYMENT G ENDER G AP ...............................................................................................................31 2.13 R ECONCILING R ECORD E MPLOYMENT AND L OW G ROWTH ..........................................................32 2.13 D EBT ........................................................................................................................................................33 2.14 C REDIT R ATING .....................................................................................................................................33 2.15 M ONETARY P OLICY ...............................................................................................................................34 2.16 I NFLATION ..............................................................................................................................................36 2.17 T HE C ONSUMER P RICE I NDEX ............................................................................................................36 2.18 F OREIGN E XCHANGE .............................................................................................................................37 2.19 C URRENT A CCOUNT ..............................................................................................................................38 3.0 HIGHLIGHTS OF OTHER ACHIEVEMENTS...................................................................... 39 3.1 T AX C UTS M ADE P ERMANENT ..............................................................................................................39 3.2 N EW P ROCUREMENT R EGIME ...............................................................................................................40 3.3 P ENSION F UND M ODERNISATION .........................................................................................................41 3.4 P UBLIC B ODY G OVERNANCE ..................................................................................................................42 3.5 C USTOMS A CT ...........................................................................................................................................42 3.6 M ICRO - CREDIT A CT TABLED ..................................................................................................................42 3.7 BOJ M ODERNISATION .............................................................................................................................43 3.8 F ISCAL C OUNCIL .......................................................................................................................................43 3.9 W IGTON IPO.............................................................................................................................................43 3.10 T RANS J AMAICA IPO .............................................................................................................................44 3.11 P UBLIC S ECTOR T RANSFORMATION ..................................................................................................46 3.11.1 Rationalisation of Public Bodies .............................................................................................46 3.11.2 Compensation Management.....................................................................................................46 3.11.3 MyHR+ - the integrated HR and Payroll system...............................................................46 4.0 STRATEGIC INITIATIVES..................................................................................................... 47 4.1 D ISASTER R ISK F INANCING ....................................................................................................................47 4.1.2 Catastrophe Bond.............................................................................................................................49 2