Holness freezes vehicle purchases for public officials as Jamaica seeks hurricane recovery funds
Key Points(5)
- Prime Minister Andrew Holness has announced an immediate suspension of vehicle purchases for public officials and ordered public sector agencies to scale back Christmas celebrations and retreats as the Government seeks to fund Hurricane Melissa recovery without additional borrowing.
- Speaking at a special press briefing at Jamaica House on Tuesday, October 27, Holness said the Government must find $9.65 billion for roof grants by identifying savings elsewhere in the national budget.
- “If savings are not found within the budget, the Government would have to resort to borrowing,” he said.
- Holness said the public sector would lead the effort to reduce spending, noting that ministries and agencies are already subject to a moratorium on nonessential official overseas travel and a freeze on new asset purchases, leases and hotel retreats.
- The newly announced suspension of vehicle purchases for public officials will remain in effect until March 31, 2027.
Prime Minister Andrew Holness has announced an immediate suspension of vehicle purchases for public officials and ordered public sector agencies to scale back Christmas celebrations and retreats as the Government seeks to fund Hurricane Melissa recovery without additional borrowing.
Speaking at a special press briefing at Jamaica House on Tuesday, October 27, Holness said the Government must find $9.65 billion for roof grants by identifying savings elsewhere in the national budget.
“If savings are not found within the budget, the Government would have to resort to borrowing,” he said.
Holness said the public sector would lead the effort to reduce spending, noting that ministries and agencies are already subject to a moratorium on nonessential official overseas travel and a freeze on new asset purchases, leases and hotel retreats.
The newly announced suspension of vehicle purchases for public officials will remain in effect until March 31, 2027. Public sector agencies have also been directed to keep Christmas celebrations and retreats to a minimum.
“I drive a 2025 vehicle, so if I can bear it, everybody else must bear it too,” Holness said.
“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,” he added.
The existing moratoriums are scheduled to expire in March 2027, when the Government will reconsider budgetary ceilings for the affected spending categories as part of the preparation of the next budget.
Holness also indicated that the Government is likely to seek parliamentary approval for a further temporary suspension of the fiscal rules into the 2027-28 financial year to accommodate the scale of recovery and reconstruction following Hurricane Melissa.
The fiscal rules establish limits on budget deficits and set a framework for reducing public debt. They were already suspended following the hurricane to give the Government greater flexibility to respond to the disaster.
The latest spending restrictions form part of the Government’s broader effort to redirect public resources towards rebuilding affected communities and supporting recovery while limiting the need for additional borrowing.
