Wed | Apr 26, 2017

Budget cuts coming to accommodate signed wage deal

Published:Wednesday | August 12, 2015 | 8:09 AM
Phillips ... While the new wage deal will cost more than planned, it has not affected the economic reform programme with the International Monetary Fund.

Finance minister, Dr Peter Phillips, has suggested that there will be cuts to this year's budget to accommodate the new wage deal signed yesterday with some public sector trade unions. 

He made the declaration during the signing of the agreement with the Jamaica Confederation of Trade Unions to cover the period 2015 to 2017. 

Phillips said the deal exceeded the government's initial budget adding that neither the government nor the unions got exactly what they wanted. 

But he says some provisions in the budget will either be abandoned or postponed in order to contain expenditure and accommodate the deal. 

 

Finance and Planning Minister, Dr. Peter Phillips

The full cost of the new wage deal has not been disclosed. 

However, the Government had budgeted $165 billion for wages and salaries in the current 2015 to 2016 fiscal year.

Phillips also noted that while the new wage deal will cost more than planned, it has not affected the economic reform programme with the International Monetary Fund. 

Under the programme, Jamaica should reduce wages to the equivalent of nine percent of the Gross Domestic Product in other words the total value of the country's goods and services.