Downside risks to growth projections significant, says fiscal commissioner
Published:Friday | March 7, 2025 | 5:08 PM
Fiscal Commissioner Courtney Williams says while Jamaica’s fiscal position and policy are sustainable, downside risks to growth projections are significant, given current geopolitical uncertainties and potential for hydrological shocks such as hurricanes.
After examining the government’s fiscal policy paper (FPP) for 2025/26, Williams said the legislated debt-to-GDP target of 60 per cent or less by financial year 2027/28 is expected to be met.
However, the fiscal commissioner said the heavy reliance on, and the potential for fallout in tax revenue inflows, during the last two weeks of March, raise the risk for fiscal deviation with minimal opportunity for in-year adjustments.
He said the Government has shown a willingness and capacity to make fiscal adjustments when faced with shocks in order to meet fiscal targets.
In addition, Williams said the administration has implemented several measures to mitigate the impact of natural disasters through various disaster-risk financing instruments and the strengthening of the Public Investment Management System to bolster resilience.
The fiscal commissioner said all expenditure categories for the central Government are budgeted to decline relative to GDP in 2025/26, except wages and salaries.
- Edmond Campbell
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