REPRESENTATIVES FROM the private sector, the trade unions, academia, civil society, government and the opposition have formed an alliance entitled 'Partnership for Progress', in an attempt to come up with a plan to adjust the country's fiscal accounts.Beverly Lopez, president of the Private Sector Organisation of Jamaica, said the aim of this new alliance is to promote a climate which will enable job creation and foster economic growth.
"The starting point of the Partnership discussions is recognition of the threat posed by the current economic state to the standard of living of every Jamaican - owners and workers alike."
A leading member of this new Partnership told The Gleaner yesterday: "The Government's wage bill cannot continue to grow faster than revenues and that has to be addressed. We are asking the Government to properly manage the assets of the country.
FISCAL ACCOUNTS
"Our intent is not to offer prescriptions for the governance of Jamaica but rather make suggestions for adjustments to the fiscal accounts and we are looking to gain consensus on a number of issues. Our main focus will be on: wage and price restraint, tax reform, divestment of national assets, and debt management."
Partnership for Progress hopes to have a full plan ready to be put in place before the next budget, to help Government balance the budget by 2005/06.
The formation of this 'Partnership for Progress' comes against the background of the fiscal deficit rising to over $24 billion for the period April to October 2003.
Overall revenues are $2.5 billion below target, while expenditures are $146.8 million above budget. This spells a fiscal balance of $2.63 billion worse than budgeted. Figures released by the Ministry of Finance for October show the Government has spent $99 billion since the start of the fiscal year but has raked in only $75 billion.
The country continues to be engulfed in debt which stands at over $656 billion.
A team from the International Monetary Fund is in Jamaica with the Ministry of Finance and Planning saying that it is here to conduct an update and review of the economy.
