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The government will do all we can to ameliorate the effect of this pandemic we will be implementing an unprecedented 25 billion dollar fiscal stimulus we review how finance and the public service kept focused on building forward in 2020 even in the face of unprecedented challenges it was a great start to 2020 for the ministry of finance building off increased
Revenue and fiscal surplus at the end of 2019 minister dr nigel clark was able to announce an 18 billion cut in taxes when the new budget was introduced in march it included a 1.5 cut in general consumption tax gct a cut in the rate of gct will leave big difference will leave more disposable income in the economy which would boost economic activity which would
Benefit all households and firms in addition asset tax paid by financial institutions was reduced by 50 and micro small and medium-sized enterprises msmes got a tax credit of 375 000 government didn’t stop there coco coffee and coconut industries also benefited from a 50 reduction on aggregate fees and the trade board reduced its fees charged for all non-motor
Vehicle-related activities by 50 while the ministry of finance was setting the framework for economic growth it was also being proactive in anticipation of the coronavirus covet 19 reaching our shores when the first imported case was confirmed on march 10 plans were unveiled the same day our first fiscal response is to provide an advance of two billion dollars
Against the budget proposed for 2021 the two billion dollars mr speaker will be immediately available in addition a seven billion dollar covet 19 contingency fund was put in place from the 2021 budget to provide for any broader impact of kovit 19. we want the jamaican people to know however that this that the government is prepared should the need arise mr speaker
A week later the banking sector agreed to forego the reduction in asset tax announced in the budget and donate that 3 billion dollars to the kovit 19 contingency fund to ensure there was a steady supply of essential safety equipment in the country the finance ministry waived customs duties on the importation of masks gloves hand sanitizers and liquid soap for
A 90 day period it also waived the special consumption tax on approximately 100 000 liters of alcohol for use in the making of sanitizers the producer of this hundred thousand would actually be donating this hundred thousand to the national health fund and the ministry of health to enable continued operation of the business process outsourcing bpo sector the
Minister also waived the requirement for operators to keep equipment at their designated offices to facilitate work from home when economic activities were being impacted from containment measures such as the closures of airports curfews and or work from home order the government was again prepared with stimulus measures a 10 billion dollar covet allocation of
Resources for employees care program was rolled out in april it provided temporary cash support to targeted businesses and individuals we have the best chance to recover if we support companies to remain connected to their employees and we support employees who have become disconnected the set and best cash components were later extended to december 2020 to
Further ease financial strain the students loan bureau waived fees from april to june and deferred all loan repayments for three months among other contingency measures deployed by the finance ministry was to secure the approval of 520 million us dollars from the international monetary fund imf rapid financing instrument rfi if the need arises the money will
Be used to tackle challenges associated with kovitt 19. in addition the minister got approval from both parliament and the senate to suspend jamaica’s fiscal rules until march 31 2021 giving government the flexibility to deploy funds for critical expenditures it will allow the government to target a lower primary surplus of three and a half percent of gdp this
Fiscal year down from five point four percent and this will allow us to accommodate the corvid 19 response expenditures in light of the reduced revenue that we’re likely to experience by october recovery 19 expenditure was 36.8 billion dollars as the pandemic spread worldwide the economic impact became evident as a result of global and local containment measures
However there was a tempering in the rate of contraction consequent on the phase reopening of the economy on the upside overall revenues for the first six months of the 2020-2021 financial year was eight billion dollars or three percent higher than budgeted in the first supplementary estimates while managing the economic and health challenges resulting from the
Covert 19 pandemic the government at the same time was facilitating sustainable economic recovery capital expenditure in the second supplementary estimates for 2020-2021 was increased by 6 billion to scale up public investments increasing public investment at this time can help revive economic activity and maintain jobs following that the finance ministry
Launched the jamaica investment map to allow interactive public access to information on investment projects being implemented by the government in addition 30 medium-sized companies were able to access a maximum of 14 million dollars in grants to introduce or expand innovative processes products and or services it’s funded by the inter-american development
Bank idb through the 50 million us dollar boosting innovation growth and entrepreneurship ecosystems bige project the objectives of the first operation will be to promote innovation and productivity among established msmes with high growth potential and to promote sustainable growth in scalable startups to assist businesses continue their operations the finance
Ministry relaxed criteria for tax compliance certificate tcc access to funding was also provided for 150 social service groups through the launch of the 910 000 us dollar innovating social sector financing project meanwhile coverage under the deposit insurance act was increased from 600 000 to 1.2 million dollars on the legislative side the bank of jamaica
Amendment act was approved by the house of representatives and the senate this bill madam speaker clarifies the mandate of the central bank provides for capitalization adequate capitalization of the central bank and institutes a modern and robust accountable transparent institutional framework as part of the human capital development thrust within the public
Service government gave commitment to provide 150 postgraduate scholarships for civil servants valued at more than one billion dollars over the next five years dr clark was able to continue the government’s fiscal measures following his reappointment as finance minister after the september 3 general election he is supported by marsha smith who was appointed
Minister of state leslie campbell who previously held the position was reassigned to the ministry of foreign affairs and foreign trade 2020 a year of diligent and strategic decision-making for the ministry of finance and the public service and working together supporting each other mr speaker jamaica will overcome this and these fiscal stimulus measures will
Give us the best opportunity for our eventual economic recovery you
Transcribed from video
Ministry of Finance & the Public Service 2020 Year In Review By Jamaica Information ServiceliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-01-06T220009+0000endTimestamp2021-01-06T221023+0000}
