The World Bank Report No: ISR5218 Implementation Status & Results Jamaica 2nd. Programmatic Debt and Fiscal Sustainability Development Policy Loan (P123241) Public Disclosure Copy Project Name: 2nd. Programmatic Debt and Fiscal Sustainability Program Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: Development Policy Loan (P123241) Country: Jamaica Approval FY: 2012 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Jamaica Ministry of Finance and Public Service Key Dates Board Approval Date 08-Sep-2011 Original Closing Date 31-Mar-2012 Planned Mid Term Review Date Last Archived ISR Date Effectiveness Date 06-Oct-2011 Revised Closing Date 31-Mar-2012 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) 1) Enhancing fiscal and debt sustainability, by supporting reforms to increase control on public spending and debt generation, reduce debt service burden and improve debt management, reduce financial vulnerabilities, and increase public spending effectiveness. 2) Increasing the efficiency of financial management and budget processes, by supporting efforts to improve the efficiency of public expenditure and investment, and strengthen control of public finances and the effectiveness of government budgeting practices. 3) Reducing distortions and enhancing the efficiency of the tax system, through reducing the use of fiscal incentives and increasing the uniformity of the tax code, improving client services for tax payers, broadening the tax base, and simplifying tax payments. Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Overall Implementation Progress (IP) Satisfactory Public Disclosure Copy Implementation Status Overview The Government of Jamaica has made progress in achieving the objectives of its economic reform program, supported by the Second Programmatic Fiscal Sustainability DPL (FSDPL2). The Parliament enacted two additional legislative amendments to strengthen the Fiscal Responsibility Framework (introduced in March 2010). The re-organization of the Debt Management Branch (DMB) continues with the hiring of directors of the new Front and Back offices and the ongoing efforts to recruit Middle office personnel. The Parliamentary Tax Committee began its review of a Green Paper on tax reform in September and the Government has held a series of consultations with business and professional organizations, civic bodies, trade unions, academics, workers, and the general public. However, Parliamentary discussions of recently tabled legislation, including the Fiscal Responsibility Framework Regulations (approved by the House in November) and the Public Debt Management Bill, have been postponed until after the December 29 general elections. Results Page 1 of 4 The World Bank Report No: ISR5218 Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target The FY2011/12 budget process is developed Yes/No Value No Yes Public Disclosure Copy within the FRF and is bound by the FRF➢� s medium term targets for debt creation and the Date 21-Apr-2010 14-Sep-2011 30-Mar-2012 overall fiscal deficit. Comments There was no FRF and no The original budget, approved medium-term targets on May 11, 2011, was governing the FY2010/11 developed with the FRF budget. medium-term targets in mind. Supplementary budget estimates were approved on Sep. 14, 2011, and they included a series of expenditure cuts to offset higher wage spending to ensure continuedconsistency with the medium-term framework. A detailed borrowing plan is developed by the Yes/No Value No Yes Debt Management Unit, which fully operationalizes the Debt Management Date 23-Apr-2010 28-Apr-2011 30-Mar-2012 Strategy; and quantitative limits on instruments Comments Until FY2011/12, there was The target has been met. The The new Public Debt and lenders are established no Medium-Term Debt FY2011/12 budget Management Bill (yet to be Strategy and no quantitative submission was accompanied approved by Parliament) borrowing limits. by a Medium-Term Debt contains quantitative Management Strategy. borrowing limits. The Government has fully implemented the Yes/No Value No Yes new methodology for evaluating capital investments in six pilot ministries. Date 21-Apr-2010 11-Apr-2011 30-Mar-2012 Comments Investment projects for the The target has been met. For The Bank will monitor the FY2010/11 budget were FY2011/12, ministries had to implementation of the chosen without a indicate which The Target has methodology for the methodology for evaluating been met. Government FY2012/13 budget. Public Disclosure Copy projects against each other. priorities (from a list of specific criteria) their investment projects were expected to achieve, and Ministry of Finance staff then ranked projects by assigning specific point values to each criteria. Page 2 of 4 The World Bank Report No: ISR5218 Indicator Name Core Unit of Measure Baseline Current End Target The six pilot Ministries, Departments, and Yes/No Value No Yes Agenciess have submitted their MTEFs. Date 21-Apr-2010 11-Apr-2011 30-Mar-2012 Public Disclosure Copy Comments There were no medium-term The target has been met. In The Bank will monitor the budgets submitted for the addition to their detailed medium-term budget FY2010/11 budget process. budget submission for submissions this FY, paying FY2011/12, the 6 pilot particular attention to the ministries also submitted FY2012/13 submissions vs. indicative budgets for the next the indicative budgets two fiscal years. prepared for this FY last year. Improved PEFA rating of ➢� Collection of tax Text Value D+ N/A B payments➢� Date 31-Mar-2008 20-Oct-2011 30-Mar-2012 Comments Rating of "D+" in FY2007/08 There has been no PEFA The program target is a rating assessment in Jamaica since of B in FY2011/12. the one carried out in 2007. Using the "Paying Taxes" category of Doing Businessas a substitute, Jamaica's ranking has worsened slightly from 2007 (from 163/175 to 172/183) but has improved from last year. Data on Financial Performance (as of 13-Oct-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P123241 IBRD-80840 Effective 08-Sep-2011 25-Sep-2011 06-Oct-2011 31-Mar-2012 Disbursements (in Millions) Public Disclosure Copy Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P123241 IBRD-80840 Effective USD 100.00 100.00 0.00 100.00 0.00 100.00 Tranches Tranche 1 Description Single Tranche (USD$100,000,000.00) Amount (USD) Expected Release Date Actual Release Date Status Page 3 of 4 The World Bank Report No: ISR5218 100 13-Oct-2011 13-Oct-2011 Pending Released Key Decisions Regarding Implementation Public Disclosure Copy The implementation is progressing satisfactorily. Restructuring History There has been no restructuring to date. Related Operations P113893-First Programmatic Debt and Fiscal Sustainability Development Policy Loan, P123241-2nd. 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