Gov’t freezes vehicle purchases, orders scaled down Christmas parties to help fund Melissa recovery
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Prime Minister Dr Andrew Holness says the freeze on certain public sector travel and spending is needed to find money for Hurricane Melissa recovery without new borrowing, announcing today a temporary halt on vehicle purchases for public officials and directing that Christmas parties be scaled down.
He told a press briefing that the $9.65 billion for roof grants must be cut from elsewhere in the national budget.
Speaking at Jamaica House on Tuesday, Holness said that if savings are not found within the budget, the Government would have to resort to borrowing.
He said the Government is starting with the public sector to set an example.
Ministries and agencies are already under a moratorium on non-essential official overseas travel, as well as a freeze on new asset purchases, leases and hotel retreats.
He also announced an immediate pause on the purchase of motor vehicles for public officials and directed public sector agencies to keep Christmas celebrations and retreats to a minimum.
“These measures are part of a continuing review of expenditure across the public sector. Every Ministry and public body must examine what can be reduced, deferred or done more efficiently so that additional resources can be directed towards the restoration efforts,” Holness said.
The moratoriums will expire in March 2027, he said, and the new budget will reconsider the budgetary ceilings for these items.
Holness also said the Government is likely to ask Parliament to approve a further temporary suspension of the fiscal rules into 2027/28 to accommodate the scale of recovery and reconstruction.
The rules cap deficits and set a timetable for reducing public debt. They were already suspended after the hurricane.
- Sashana Small
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