Finance Minister Dr. Nigel Clarke has sought parliament’s approval to increase the ceiling of the contingencies fund from $100 m to $10 b.

The fund is intended to be used for emergencies such as natural disasters, which Jamaica is prone to.

Speaking in the lower house this afternoon (Mar 26) Dr. Clarke said government intends to transfer $2 b to the fund.

Dr. Clarke outlined the adverse economic impacts on Jamaica due to past storms.

He added that government also intends to amend the Fiscal Administration and Audit Act, to facilitate regulation of the use of the funds specifically in the event of natural disasters.

The funds will be held at the Bank of Jamaica and managed by the Accountant General.

Meantime, Finance Minister Dr. Nigel Clarke has explained that the contingencies fund is just one of several layers of financing of natural disaster risk.

In parliament this afternoon, Dr. Clarke moved a resolution to raise the ceiling of the contingencies fund from $100 m to $10 b, so as to provide space for future transfers related to natural disaster risk coverage.

He outlined the intent of the government to develop a policy for the financing of natural disaster risk consisting of several layers, including the contingencies fund, catastrophe bonds, and the Caribbean Catastrophe Risk Insurance Facility.

Dr. Clarke lamented that unplanned weather related recovery expenditure diverts scarce resources from social and economic development priorities, with the vulnerable communities being most affected.