Business
Spending Cuts expected in Jamaica
Well-placed Government sources have indicated that some US$82 million dollars is to be cut from the national budget.
The Cabinet yesterday held discussions on the Supplementary Estimates of Expenditure as the Government seeks to tighten its spending.
Finance Minister Audley Shaw (pictured), has been forced to revise the US$6.4 billion budget he tabled in April, as the Government seeks to put back on track certain targets under its standby loan agreement with the International Monetary Fund (IMF).
Shaw has said factors such as the country’s high wage bill and the need to divest Clarendon Alumina Partners are behind the delay of the review of the country’s economic programme for two consecutive quarters.
The Government has been finding it difficult to plug the hole in the 2011/2012 budget, with data from the finance ministry indicating that revenue intake under-performed by US$35 million.
In the meantime, the Government has reportedly ruled out imposing new taxes as part of efforts to boost revenue collection.