Another 'Band-Aid' budget
published: Wednesday | April 23, 2003
THE EDITOR, Sir:
THE FINANCE Minister has delivered what I consider to be yet another 'Band-Aid' budget. Even though the budget does not spell immediate doom and gloom, questions must be raised about what is to come later on in the financial year, especially if these new tax projections fall short. And what happens next year, and the year after, when there is nothing else to tax?
The fundamentals of economics go back to what we produce, versus what we consume. In Jamaica, and especially in recent times, we are consuming too much and producing too little. What is worse is that our over-consumption is being encouraged by the government in order to distract people from the harsh economic realities. Any credible economic plan must be focused around long-term macroeconomic stability, and competitive production.
What is obvious is that this budget does not reflect the significant structural adjustments in the economic framework, which are necessary to stimulate long-term growth and development. Further to this, the economic policies of the government do not seem to deal with our consumption problem.
This present budget fails to address these critical elements of the economy and represents another stop-leak, patch-up, Band-aid economic plan.
