Analysts Warn Jamaicans to Temper Expectations for Upcoming Budget

Temper your expectations for the upcoming budget.

That’s the advice from the chairman of the former Economic Programme Oversight Committee, EPOC, Keith Duncan, as the country nears another fiscal cycle, coupled with the looming general elections.

Speaking on Nationwide at Five on Monday, Mr. Duncan called for spending to be restrained and established macro-economic rules to be adhered to.

Chevon Campbell tells us more.

Another round of wage negotiations is on the horizon with the public sector. These are set to take place under particularly tight economic conditions.

Former EPOC chairman, Keith Duncan, says the nation’s civil servants must be reasonable in their demands.

Similarly, he’s urging the Jamaican people not to expect extensive economic giveaways for the upcoming fiscal year.

Mr. Duncan says of particular concern is the ballooning cost of the public sector wage bill.

While there are no expectations for new taxes in the upcoming fiscal year, Mr. Duncan also believes there’s little space for a further significant adjustment in the income tax threshold. The threshold sits at $1.7 million.

Under the current Jamaica Labour Party administration, it’s been increased three times, moving from an initial value of just below $600,000.

Mr. Duncan is urging the government to stay the course, despite the temptation of significant expenditure in a general election year.

Meanwhile, chartered accountant and financial commentator, Dennis Chung, believes further significant increases in public sector salaries at this time will do more long-term harm than good.

He’s again calling for greater productivity as an actual solution to the country’s economic woes.

Dennis Chung, chartered accountant and financial analyst. He was also speaking on Nationwide at Five on Monday.