Jean Lowrie- Chin
Jamaicans welcomed Prime Minister Dr Andrew Holness’s announcement of his Government’s plans to address the challenges of homeownership, efficiency, transportation, and our struggling poor. These include the Solidarity Programme which will award $20,000 to 50,000 needy Jamaicans who are not benefiting from other government programmes.
His New Social Housing Programme has been transforming the lives of the destitute, though he made it clear that there were still thousands of such people who need assistance. The increased National Housing Trust (NHT) loan limit to $9 million will enable low-income workers to make homeownership a reality, especially if they partner with a relative to double their investment.We can imagine the joy of parents at the news that 60 school buses will be provided for rural schoolchildren beginning in September. Transportation Minister Daryl Vaz later said that taxi and minibus drivers would still play a role as they would be shuttling children from various districts to the main roads being traversed by the school buses.
Motor vehicle owners are breathing a sigh of relief that their Certificates of Fitness will be extended and seniors are looking forward to the AmAlive app instead of having life certificates signed every quarter.The productivity issue The points made by both Prime Minister Holness and Opposition Leader Mark Golding in their budget presentations took me back to the final press release issued by the Economic Programme Oversight Committee (EPOC) as they wound down last December, with the establishment of the independent Financial Commission.
The following were among the highlights:
• Revenue and grants for April to October 2024 were marginally ahead of budget, while total expenditure was within budget in the first supplementary estimates (FSE)
• Tax revenue forecasted for financial year (FY) 2024/25 was revised upward from $899.23 billion in the original budget to $905 billion in the FSE.
• Non-tax revenue was increased in the month of October by $33.2 billion, due primarily to the overperformance of the securitisation transaction, which exceeded the target of $45 billion by $25 billion.
• Total expenditure forecast for FY 2024/25 were revised upward by $40.3 billion to $1,064,083 billion in the FSE.
• Inflation out-turn was 4.9 per cent for October 2024. Bank of Jamaica projects it to remain in the target range of 4.0 per cent-6.0 per cent
There was an air of optimism around these points, but Chairman Keith Duncan called for a cap on expenditure for wages and salaries. The release noted that, “With wages and salaries being already high and consuming approximately 45 per cent of tax revenues and 40 per cent of total revenues for the fiscal year, Jamaica could continue to see this ratio moving higher, as economic activity slows along with growth in tax revenues. Projections currently indicate that wage levels could rise to 13.4 per cent of GDP [gross domestic] product by 2027/28, consuming 46 per cent of tax revenues and 43 per cent of total revenues.”
For hard-working, productive government employees, the salary increases are well deserved. At least two high-paying private sector organisations have noted to me that they have lost staff to government agencies offering higher salaries.
However, as the prime minister pointed out in his budget presentation, Jamaica’s productivity rate is not keeping pace with our Caribbean neighbours. While Opposition Leader Golding criticised the Government for what he termed a “take-it-or-leave-it” approach to salary revisions, the dilemma facing the Government is justifying the multi-billion increases with higher performance. If I had my way, nurses and police would be some of the topmost earners — their sacrifices and dedication make them leaders in productivity.
There have been myriad complaints about the time it takes to deal with personnel at certain government agencies, yet there have been abundant commendations for the operations of the National Health Fund. This proves that it can be done, and with current international challenges, it must be done.
Jamaica Highlights 