Kingston, Jamaica, February 17, 2025 – The Government has announced a $1.26-trillion Budget, strategically designed to navigate the current economic climate while investing in Jamaica’s long-term prosperity.
The Estimates of Expenditure for fiscal year 2025/26 was tabled in the House of Representatives on Thursday (February 13) by Minister of Finance and the Public Service, Hon. Fayval Williams.
The Government plans to fund the Budget from anticipated revenues and grants of $1.09 trillion in the upcoming year. Tax collections are forecast to rebound by 5.9 per cent next year to $949.5 billion.
The Budget strategically increases allocations for sectors critical to Jamaica’s growth and development.
Capital expenditure, which refers to new acquisitions, upgrades or maintaining physical assets like roads and hospitals, increased while recurrent expenditure, which relates to the ongoing cost of running and maintaining government services like salaries, supplies and utilities, decreased marginally.
Funding for healthcare, education and social welfare programmes will be maintained to ensure all citizens have access to the requisite resources to thrive. For example, the capital budget for the Ministry of Education, Skills, Youth and Information has increased by $4.2 billion. About $1.7 billion programmed for the Education component is geared towards infrastructure improvements in primary and secondary schools.
The Ministry of Health and Wellness’ allocation has risen by $3.3 billion, with significant funds being earmarked to support compensation for staff and infrastructural work at the Cornwall Regional Hospital (CRH).
Recognising the invaluable contributions of public-sector workers, the Government is prioritising its largest financial obligation – $496 billion – to cover new pay rates and retroactive pay for essential civil servants.
Another big-ticket Budget item is infrastructure development. The Government has committed to upgrading the nation’s infrastructure to facilitate economic growth and improve the quality of life for all Jamaicans.
Consequently, significant allocations have been made to key projects. These include the Shared Prosperity through Accelerated Improvement to our Road Network (SPARK) Programme – $8 billion; Southern Coastal Highway Improvement Project (SCHIP) – $2.5 billion; Portmore Resilience Park – $2.5 billion, and Montego Bay Perimeter Road – $14 billion.
Meanwhile, debt servicing is expected to be $340.3 billion in 2025/26, a significant improvement over previous years.
Additionally, the debt-to-gross domestic product (GDP) ratio is projected to fall to 63.7 per cent at the end of the next fiscal year, in March 2026. This is indicative of the Government’s commitment to reducing the debt burden and creating a more stable economic future.
While the economy experienced contractions in the July-September and October-December quarters, projections indicate a return to growth of 2.2 per cent in fiscal year 2025/26.
CONTACT: ANDREW LAIDLEY
Photo Caption: Minister of Finance and the Public Service, Hon. Fayval Williams, addresses the House of Representatives during Thursday’s (February 13) tabling of the Estimates of Expenditure for Fiscal Year 2025/26.
Photo by Donald De La Haye