JUTC to use $2.5 billion allocation to cover revenue shortfall

CARIBBEAN: The government-owned public transport service Jamaica Urban Transit Company (JUTC) financial woes continues as it had disclosed that bus company will use nearly all of the additional $2.5 billion allocated by the Finance Ministry in the revised Budget for the current fiscal year to cover a shortfall in revenues.

Darlene Morrison, Financial Secretary in the Ministry of Finance, told the Public Administration and Appropriations Committee (PAAC) of Parliament that $2.1 billion is to support a shortfall in the company's operations while the remaining $400 million is to support the phased implementation of new technological initiatives.

Initially, $2.5 billion was allocated the Jamaica Urban Transit Company (JUTC) in the 2018-19 budget approved by Parliament in March.

However, according to the first Supplementary Estimates tabled in Parliament last Tuesday, the JUTC was allocated a further $2.5 billion.

Meanwhile, Marcia Hamilton, JUTC deputy general manager for finance, told members of the committee that up to the end of August, the bus company was 16 per cent behind on revenues.

"We had projected to do in revenues $2.1 billion, at the end of August we did $1.8 billion," said Hamilton.

The PAAC is combing through the revised budget before it goes to the House for approval later.

The Ministry of Local Government, which received a $7 billion allocation to pay arrears for street lights, also faced criticisms from members of the PAAC.

Morrison acknowledged that the collection of property taxes, which goes into the Parochial Revenue Fund to pay for street lighting, among other things, was also behind the projection.

In the original budget for 2018/19 approved in March by parliament, the JUTC was granted $2.562 billion to offset operating expenses.

The figure included $1.2 billion for the acquisition of spare parts for the buses, and $7.5 million to facilitate the purchase of the Kronos workforce management software.