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Jamaica cannot afford stimulus budget – Finance minister
The finance minister of Jamaica, Dr Peter Phillips yesterday dismissed calls for a stimulus budget saying it was enticing, but unrealistic.
Making the opening presentation during the 2012/13 Jamaica budget debates, Dr Phillips said he felt “compelled to address the question as to whether there is a choice between an austerity budget and a stimulus budget”.
“According to this line of argument, the current budget of Jamaica, is too tight and we should be engaging in more expenditure, especially on the capital side of the budget in order to grow our way out of our present predicament. Quite frankly, I empathize with those calling for more expenditure. Who would not want to answer the call to spend more? I certainly would. But seductive as the thought is, it is a mirage,” Dr Phillips said.
The finance minister said the call could well be taken up but for the fact that international financial institutions are not prepared to lend Jamaica more based on its current debt condition.