Dear Editor,

I purposely waited until the politically charged debates on the recent budget completed the rounds to present some important facts on the budget that seem to have eluded the media, academia and even the political leaders in many instances.

The overall budget for 2010-11 is down to $503.9B – the largest cut, nominal and real in our nation’s history. Debt servicing is now 47 per cent of the total budget compared to 60 per cent last financial year. Provision for education services was increased to $71.9B, a 14.2 per cent increase when compared to last year. Provisions for national security saw an increase of 7.5 per cent or $38.0B. The provision for health rose to $31.6B, a 6.2 per cent increase, all this while borrowing was reduced from $301.6B in 2009-10 to $176.3B in 2010-11 and the only tax increase was in property taxes.

The establishment of Central Treasury Management System (CTMS) to better manage public resources currently managed in many different “buckets” is a welcome step forward in the rationalisation of our financial system.

In terms of exchange rate stability, the Jamaican dollar depreciated only 0.78 per cent in 2009, occasioning lower inflation, lower current account, and lower budget deficits.

Bank of Jamaica benchmark interest rates have been the lowest in 24 years.

While the agreement with the IMF has occasioned necessary austerity measures being put in place to ensure the long-term viability of the national economy, expenditure on social safety net programmes has improved significantly. Expenditure on Programme of Advancement Through Health and Education (PATH) programme has increased by 34.19 per cent or $868M over 2009-10. The number of beneficiaries has moved from 247,000 to 341,000 since October 2008. Over the same period the assistance to children attending school has moved from $604M to $2.2B.

Jamaica Social Investment Fund expenditure increased by 125 per cent from $1.05B in 2009-10 to $2.36B in 2010-11. The National Health Fund increased by 26 per cent from $2.36B in 2009-10 to $2.98B in 2010-11. School Feeding Programme moves from $1.05B in 2007-08 to $2.95B in 2010/11. The Income Tax Threshold doubled from $220,000.00 to $440,000.00 per annum.

The government inherited wage increase commitments made by the previous administration that saw the public sector wage bill grow from $82B in 2006-07 to $126B in 2009-10, a $44B or over 50 per cent increase. This has put tremendous pressure on the fiscal programme and political pressure to make good on these promises. Hence, we have seen a decline in the industrial relations climate, with public sector workers clamouring for increases promised many moons ago. Jamaica now more than ever needs more patriots and less politicking

Phillip A Chambers

phillipdcchambers@yahoo.com