Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697808072032.pdf (Jamaica)
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, JAMAICA No.5-2010 I assent, Governor-General.

AN ACT Further to Amend the Financial Administration and Audit Act.
The date notified by the Minister blinging the Act into operation ] BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Senate and House of Representatives of Jamaica, and by the authority of the same, as follows:­ 1.-(1) This Act may be cited as the Financial Administration and Short title, Audit (Amendment) (No.2) Act 2010 and shall be read and construction construed as one with the Financial Administration and Audit Act commence- (hereinafter referred to as the principal Act) and all amendments ment.
thereto.

and , , (2) This Act shall come into operation on a day appointed by the Minister by notice published in the Gazette.

j j -~------.~-----.

2 [No.

J The Financial Administration and Audit (Amendment) (No.2) Act, 2010 Insertion of new section 7A into principal Act.

Amendment of section 8 of principal Act.

Amendment of section 9 of principal Act.

Amendment of section 16 of principal Act.

2.


The principal Act is amended by inserting next after section 7 the following as section 7A­ "Loans and grants to Govern­ ment.

7 A.---{l) The authority to receive a loan or grant made to the Government from any source is hereby vested solely in the Minister.

(2) Any loan or grant referred to in subsection (1) shall be paid into the Consolidated Fund.".

3.
3.

Section 8 ofthe principal Act is amended in the marginal note and in subsection (1), by inserting next after the words "section 7", in each case, the words "or 7A".

4.
4.

Section 9 ofthe principal Act is amended by inserting next after subsection (2) the following as subsection (2A)-­ (2A) Notwithstanding the provisions ofsubsection (2), the " Ministermay, ifin his opiniontheexigencies ofthe financial situation render it necessary, withdraw, suspend, or impose conditions on any expenditure authorized under, a warrant issued pursuant to section 117 ofthe Constitution.".
S. Section 16 ofthe principal Act is amended by inserting, next after subsection (2), the following subsection­ (3) Where, in relation to any department specified in a " designation under subsection (1 ), a proposed change in policy with respect to the work ofthe department is likely to have an impacton the finances or financial administrationofthedepartment, the accounting officer shall notify the Financial Secretary in writing ofsuch change as soon as is practicable.".
Insertion of new Part VII into principal Act.

6.

The principal Act is amended by renumbering Part VII as Part VIII and inserting the following as Part VII­ " PART VII.

Fiscal Responsibility Framework Interpreta- lion for Part VII.

48A.

In this Part- "fiscal balance" means revenue less expenditure ofthe Govennnent; The Financial Administration and Audit (Amendment) (No.2) Act, 2010 [No. ]

3 Development and implementa­ tion of fiscal policy, etc.
"fiscal indicators" means measures such as numerical ceilings used to evaluate the state ofthe economy or the fiscal position ofthe Government; "primary balance" means the fiscal balance plus net interest expense; "public sector" means the Government and all public bodies; "total debt" means the stock ofpublic debt directly contracted by the Government and Government guaranteed external debt.
48B.--(1) The Minister shall be responsible for­ (a) (b) (c) the development and implementation ofa fiscal policy framework for Jamaica; the supervision and monitoring ofpublic finances; and the co-ordination ofthe international and inter-Governmental fiscal relations ofthe Government.
(2) Upon presentation ofthe annual Estimates ofRevenue and Expenditure, the Minister shall lay before both Houses of Parliament, a Fiscal Policy Paper setting out, in accordance with this section-­ (a) Macroeconomic Framework; (b) a Fiscal Responsibility Staternent; and (c) a Fiscal Management Strategy.

(3) The Macroeconomic Framework referred to in subsection (2) shall­ (a) provide an overview ofthe current state of the economy, including an evaluation ofits performance; and 4 [No. ]
The Financial Administration and Audit (Amendment) (No.2) Act, 2010 (b) give an assessment of the prospects for economic growth (accompanied by a statement ofthe assumptions tmderlying the assessment), as well as an indication ofthe medium-term trajectory for the main macroeconomic variables.
(4) The Fiscal Responsibility Statement referred to in subsection (2) shall­ (a) specify the level offiscal balance and the level of total debt that are prudent, in the opinion ofthe Minister; (b) set out the fiscal policy measures proposed to be taken to achieve the levels referred to in paragraph (a); and (c) contain a declaration, signed by the Minister, that in pursuing policy objectives he will adhere to the principles of prudent fiscal management and seek to manage financial risks accordingly.
(5) The Fiscal Management Strategy referred to in subsection (2) shall­ (a) give an assessment of the current and projected finances ofthe Government; (b) set out, in respect ofa specified planning period, being a period ofnot less than three years, the plans and policies for the development ofthe economy, including the level ofpublic expenditure as a proportion ofthe gross domestic product; (c) make explicit the ways in which such plans and policies conform to the Fiscal Responsibility Statement; The Financial Administration and Audit (Amendment) (No.2) Act, 2010 [No. ]
5 (d) withoutprejudice to theprovisionsofsection 48C­ (i) (iI) develop a set offiscal indicators (including annual public sector borrowing, the fiscal balance and the primai-y balance) to enable the measurement of economic performance and establish targets for such indicators to be met during the planning period specified pursuant to paragraph (b); and in respect of the planning period, compare the outcome ofthe fiscal indicators with the targets for the previous financial year, and give the reasons for any deviation; and (e) report on any policy changes that have been made since the presentation ofthe previous Fiscal Policy Paper.
(6) The Auditor-General shall, as soon as is reasonably practicable after the Fiscal Policy Paper is laid before both Houses of Parliament, examine the components of the Fiscal Policy Paper and provide a report to the Houses indicating whether­ (a) theconventionsandassumptionsunderlying the preparation ofthe Fiscal Policy Paper comply with the principles ofprudent fiscal management specified in section 48D; and (b) the reasons given pursuant to subsection (5)(d){ii) are reasonable having regard to the circumstances.
6 [No. ]

The Financial Administration and Audit (Amendment) (No.2) Act, 2010 Fiscal targets.
48C.-(1) Subject to subsection (2), the Minister shall take appropriate measures-­ (a) (b) (c) to reduce the fiscal balance to nil by the end ofthe financial year ending on March 31, 2016; to reduce the total debt to one hundred percent or less ofthe gross domestic product by the end ofthe financial year ending on March 31, 2016; to reduce the ratio of wages paid by the Government as a proportion of the gross domestic product to nine percent or less by the end ofthe financial year ending on March 31,2016;and (d) beyond the end ofthe financial year ending on March 31,2016, to maintain or improve on the targets specified in paragraphs (a), (b) and (c).
(2) The targets specified in subsection (1) (a) to (d) may be exceeded on the grounds ofnational security, national emergency, orsuch otherexceptional grounds, as the Minister may specifY in an order subject to affirmative resolution.

Fiscal manage­ ment prin­ ciples.

48D.


In exercising functions under this Part, me Minister shall act in conformity with the following fiscal managementprinciples-­ (a) the total debt is to be maintained at a prudent and sustainable level; (b) guarantees and othercontingentliabilities are to be managed prudtmtly with particular reference to their quality and level; Th,' Financial Administration and Audit (Amendment) (No.2) Act, 2010 [No. ]

7 Fiscal trans­ parency.


(C) borrowings are to be geared toward productive purposes and the accumulation ofcapital assets; and (d) expenditure is to be managed in a manner that is consistent with the level ofrevenue generated.
48E.-(1) Subject to subsection (2), the Minister shall take measures to ensure greater transparency in the Government's fiscal operations, including in the preparation ofthe annual Estimates of Revenue and Expenditure, and shall disclose in the Fiscal Policy Paper, any significant change in the al'counting standards, policies or practices that affect or are likely to affect the attainment ofthe targets spl'cified in section 48C or contained in the Fiscal Management Strategy related to the financial year concerned.
(2) In taking measures under subsection (1), the: Minister may reserve any information which, in tk opinion ofthe Minister­ (a) is confidential commercial information; or (b) ifdisclosed couldprejudice national security or defence or have a substantial adverse effect on the Jamaican economy or the Government's ability to managethe Jamaican economy.
(3) The Minister shall lay before each House ofParliament, at least twice in each financial year, a report on the performance ofthe economy, the public finances ofJamaica, and the actions taken under the Fiscal Management Strategy.

Tax Expen­ diture State­ ment.

48F.

Upon presentation of the Estimates of Revenue and Expenditure to the House of Representatives, the Minister shall table a Tax 8 [No.

J The Financial Administration and Audit (Amendment) (No.2) Act, 2010 Report on statement of excess, etc.
Compensa­ tion settle­ ments.

Central Treasury Manage­ ment.

Expenditure Statement giving details of waivers, exemptions and other revenues foregone in the preceding financial year.

480.
480.

Before the House of Representatives votes on any statement ofexcess or supplementary estimates pursuant to section 116(2) of the Constitution, the Public Administration and Appropriations Committee of the House shall consider, and report to the House on the statement of excess or supplementary estimates (as the case may be), having regard in particular to any Financial Instructions issued by the Financial Secretary, under section 51, as to the contents ofstatements ofexcess.
48H.-{1) Government policy with respect to the negotiation ofrates ofpay and related conditions of employment for persons employed to the Government shall be consistent with the targets specified under section 48C and the policies and plans set out in the Fiscal Management Strategy.
(2) For the purposes of subsection (1), the Minister responsible for the public service may, by order subject to negative resolution, establish compensation negotiating cycles that allow for compensation settlement for persons employed to the Government to be incorporated into the Estimates of Revenue and Expenditure for the financial year to which the settlement relates.
481.-(1) The Minister shall cause to be established a Central Treasury Management System so as to enable the cash resources 0[.­ (a) the Government; and (b) public bodies covered by an order made under subsection (3), to fall within an account to be called the Treasury SingleAccount The Financial Administration and Audit (Amendment) (No.2) Act.

2010 [No. ]

9 (2) The operation and maintenance of the Central Treasury Management System shall be in accordance with such provisions as may be prescribed.
(3) Notwithstanding the provisions of any relevant enactment or any constituent document, the Minister may, by order subject to affirmative resolution and published in the Gazette, provide for the management of the cash resources of public bodies as part ofthe Central Treasury Management System.
(4) An order under subsection (3) may be made so as to apply to a specified public body or to a class of public bodies, and may contain such ancillary, consequential or supplementary provisions as may be required to give effect to the order.".

7.

Section 50 ofthe principal Act is amended in subsection (1) by Amendment deleting the full stop appearing at the end of paragraph (f) and Off' se~tion 51° substituting therefor a semicolon, and inserting the following as paragraph Act.
(g)­ o pnnclpa "(g) a Central Treasury Management System.".

8.

Section 51 ofthe principal Act is amended by deleting the colon Amendment of section 5 I appearing at the end of paragraph (f) and substituting therefor a of principal semicolon, and inserting the following as paragraph (g)- Act.

"(g) the supply ofsuch information relating to public moneys as the Financial Secretary may require:".

Passed in the Honourable House ofRepresentatives this 23rd day ofFebruary, 2010.

DELROY CHUCK Speaker.


10 [No. )

The Financial Administration and Audit (Amendment) (No.2) Act, 2010 Passed in the Senate this 12th day of March.

2010.

OSWALD G. HARDING, OJ., C.D., Q.C.

President.

This printed impression has been carefully compared by me with the authenticated impression of the foregoing Act, and has been found by me to be a true and correct printed copy ofthe said Act.

Clerk to the Houses ofParliament.