JAMAICA 'S PERSISTENT FISCAL PROBLEMS MADE WORSE BY CURRENT PROBLEMS

JAMAICA 'S PERSISTENT FISCAL PROBLEMS MADE

 WORSE BY CURRENT CRISIS...says PM 

Prime Minister Bruce Golding says the effects of the economic downturn have only made Jamaica's persistent fiscal problems worse. "Our fiscal problems made worse by the current crisis are merely the symptom of deeper, more fundamental problems that have long bedeviled us."

Mr. Golding explained that the country has suffered chronic indebtedness so that for the last 10 years, Jamaica's interest costs and principal repayments have exceeded total revenues. "For this year our interest costs and total revenue are estimated at $310 billion" the Prime Minister told the sitting of Parliament early this morning (September 30) following the acceptance of the Supplementary Estimates by the Standing Finance Committee.

The unaffordable cost of government, which includes wages and salaries, travelling and subsistence, pensions, utilities and rental of property and equipment, was also cited by him as another constant fiscal problem.

"Our export earnings have been cut in half due largely...to the shutdown of a large portion of the bauxite/alumina sector. Some 30,000 people have lost their jobs; others have seen a decline in their earnings.

Remittances which support so many families have dropped by 15%. The result is that almost every category of revenue collection is below what we had projected and in some instances below even what was collected last year", Mr. Golding explained.

He added that the shortfall in revenue collections is projected at $13.4B for this fiscal year and as a result the fiscal deficit had to be modified upwards from 5.5% to 8.7%.

Prime Minister Golding said that our persistent problems only shaft the Jamaican people as "they are never able to see a commensurate return in the delivery of government services such roads, water supplies, good quality education and health services." This, he said cannot continue as changes and adjustments must be made.