JAMAICA | PNP Opposition Wants Full Disclosure of Implications of Revenue Shortfalls

KINGSTON, Jamaica. May 1, 2024: Opposition Spokesperson on Finance, Julian Robinson, wants the Finance Minister to fully disclose the implications of the revenue shortfalls on the budget for the current fiscal year.

The Opposition Spokesman said “The Minister needs to tell the country which programs will be negatively impacted by this revenue shortfall and whether the $25 billion of give-backs he announced in March are sustainable.

Furthermore, the Minister must explain whether the achievement of key fiscal targets in the current fiscal year will be compromised.”

This development is particularly concerning against the background that the Minister of Finance has not provided any information about the financing of the revenue measures that are projected to flow from the securitization of receivables to the tune of $25 billion in the current fiscal year. 

Robinson is repeating his call for the Minister to be open and transparent about the details of this arrangement, which is projected to generate $45 billion for the current fiscal year.

The Opposition’s concern follows disclosures from the Ministry of Finance and the Public Service, which revealed that government revenues for the fiscal year 2023/24 underperformed relative to budget expectations.

The fiscal year, which ended in March, saw total revenues falling short by $22.4 billion, while tax revenues lagged by  $24.8 billion. This underperformance has resulted in the government achieving a fiscal balance surplus of 0.04% of GDP ($1.1 billion), missing a key fiscal target of a fiscal balance surplus of 0.3% of GDP ($9.1 billion).

Robinson highlighted the importance of accurate and reliable government financial projections. He warned that inaccuracies in these projections could undermine public confidence in the national budget.

Maintaining trust in the national budget process is essential for the stability and predictability needed in government financial management.

The Opposition urges the government to undertake a comprehensive review and adjustment of its financial strategies to prevent future revenue shortfalls and ensure that fiscal targets are met.

This includes a shift in focus towards growth-inducement strategies to enhance government revenue collections. This, he suggests, is not only crucial for the county’s fiscal health but also for achieving its medium-to-long-term fiscal targets.

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