Gov't facing major arrears

Edmond Campbell, Senior Staff Reporter

Significant arrears amounting to more than $4 billion are posing a major risk to the Government's fiscal programme.

Financial Secretary Devon Rowe who made the disclosure this morning noted that for some time there have been concerns in relation to the stock of arrears to suppliers of goods and services to the government.

Addressing Parliament’s Public Administration and Appropriation Committee (PAAC) this morning, Rowe said ministries, departments and agencies have accumulated arrears for more than 90 days within the region of $2.5 billion.

He said the regional health authorities are responsible for a significant part of the outstanding sum.

The financial secretary said the arrears include old debts for drugs and supplies owed by the health bodies.

He told the committee that is examining the first supplementary estimates of expenditure that the ministry of finance is taking steps to address the issue.

He said beginning in the new fiscal year, the government will start to liquidate the amount through annual payments.

Meanwhile, outstanding sums for street light owed by the local government is said to be affecting the central government fiscal programme.

Rowe told the PAAC that $1.6 billion was owed to the Jamaica Public Service (JPS).

He said the ministry was working with local government and the JPS to pay down on the outstanding sum in the next fiscal year.

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