Co-chair of  the Economic Programme Oversight Committee (EPOC) Keith Duncan, is warning that Jamaica needs to recover quickly from the recent rains, so that it can keep on its current growth track.

Jamaica has passed all its primary targets following the first International Monetary Fund, IMF, review under the precautionary standby agreement.

Duncan says going into the Hurricane season, if  the damage from the recent rains is not addressed soon, future projections could be affected.

“Inside of the budget for this year, there is a one per cent contingency reserve – one per cent of GDP , that is approximately J$20 billion that is in place that in the event of fall out, in revenue expenditures or any kind of disasters that there is some room in the budget for such situations. But however you have to manage that contingency reserve very prudently because we are now moving into the hurricane season. We have to deal with the infrastructure and fall out as it does impact productivity with the rains that have occurred, so we really have to move Jamaica back to normalcy.”

He also  expressed optimism that the government’s target of  5 per cent growth in Gross Domestic Product (GDP) in 4 years is still achievable.

However, he argues that this depends on whether Jamaica remains focused.

He states that a number of  growth commitments, including the Logistics Hub, would need to be targeted.

“I definitely believe that the target can be achieved if those things are done and if we really focus on strategic projects one being our logistics hub ….. I met with the French economic officer yesterday – there are a lot of French companies      that are involved in logistics in Jamaica and they are very comfortable with the future of a logistics hub in Jamaica,” he said.

[Source: RJR Online]

Jamaica has surpassed its primary balance target for the fiscal year ended March 2017, over-performing by 12.8 billion to end at 135.9 billion.
This was reported by the Economic Programme Oversight Committee (EPOC) on Friday.
EPOC’s co-chairman, Keith Duncan, says that represents about 7.7 per cent of gross domestic product, above the International Monetary Fund’s target of seven per cent.
He says if the trend in the robustness of tax revenues continues there will be increased room for capital spending.
Total expenditure of $503.4 billion fell short of the target by $5 billion, while capital expenditure of $42 billion trails the budget by 6.4 per cent.
Duncan says based on the available information EPOC reviewed at the end of March, Jamaica’s strong fiscal and monetary performance remains strong.
He says non-borrowed Net International Reserves remain comfortably above the target and inflation remains within the targeted range.
Duncan also notes that all indicators suggest the economic programme is on track.
However, he says there is still much to be done to achieve the key programme objectives.
EPOC has also noted the need for public consultation and engagement as it embraced the suggestion by Finance and the Public Service Minister Audley Shaw to consider the re-establishment of a parliamentary tax committee to review the government’s revenue measures before they are announced.
[Source: The Jamaica Gleaner]

Jamaica’s primary balance for fiscal year ended March 2017 has over-performed by $12.8 billion to come in just shy of $140 billion, the Economic Programme Oversight Committee (EPOC) reported on Friday.
That represents about 7.7 per cent of gross domestic product, above the International Monetary Fund’s target of seven per cent, and according to EPOC co-chairman Keith Duncan, “if the trend in the robustness of tax revenues continues there is increased room for capital spending”.
Total expenditure of $503.4 billion fell short of the target by $5 billion, while capital expenditure of $42 billion trails the budget by 6.4 per cent.
Notably, the gap between actual and budgeted capital expenditure became increasingly smaller over the last quarter of fiscal year 2016/17 as the government made some headway into capital spending, Duncan told a press briefing held at his JMMB Haughton Avenue offices on Friday.
The lag behind budget was primarily as a result of the late approval of the 2016/17 budget in May last year instead of March.
“This challenge should no longer be an issue in this fiscal year, 2017/18. We will continue to monitor government expenditure, and in particular capital expenditure given its importance as one of the main drivers of growth,” Duncan said.
 
DRIVING PERFORMANCE
 
He said that based on the available information EPOC reviewed at the end of March, Jamaica’s strong fiscal and monetary performance remains strong. Improved tax compliance, as well as improvements in macroeconomic factors and less than anticipated government expenditure, continue to drive the primary balance performance.
Non-borrowed Net International Reserves remain comfortably above the target and inflation remains within the targeted range.
Duncan said the strong performance towards meeting the quantitative performance criteria and indicative targets for December 2016 to March 2017 under the standby agreement was supported by the successful meeting of the structural benchmarks.
Eight structural benchmarks four macro-fiscal and four for public sector reform have been met. They included the establishment of a financial inclusion council and operationalising the financial system stability committee.
“By all indicators, the economic programme is very much on track. However, there is still much to be done if we are to achieve the key programme objectives,” said Duncan.
EPOC has also noted the need for public consultation and engagement as it embraced the suggestion by Finance and the Public Service Minister Audley Shaw to consider the re-establishment of a parliamentary tax committee to review the government’s revenue measures before they are announced.
[Source: The Jamaica Gleaner]

Co-chairman of Public Sector Transformation Oversight Committee, Danny Roberts
The Public Sector Transformation Oversight Committee (PSTOC) will be having its second meeting on Wednesday, to review the Government’s success in meeting the relevant first-quarter benchmarks and activities under the precautionary standby arrangement with the International Monetary Fund (IMF). 
The standby arrangement which came into effect November 2016 has 22 activities, including six benchmark requirements which PSTOC is expected to monitor and report on.
The first-quarter benchmarks included the compensation review of salaries and allowances, recruitment rules and an employee verification exercise which were to be completed by March and the Public Sector Negotiating Framework which was to be submitted to the Cabinet by the end of April, as part of the public sector transformation and public service reform process.
PSTCO is also expected to review the activities under social protection to include an assessment and benefits review for PATH, and increasing the funding under the School Feeding Programme for the 2017/18 financial year, which were to be completed by the end of March.
Additional activities are to submit to Cabinet a graduation strategy for PATH households to exit the programme, and a review of the impact of PATH benefits on improving school attendance, which are to be completed by the end of June, 2017.
Co-chairman of PSTOC, Danny Roberts said that in addition to reporting to the public on the successes of these structural benchmarks and other activities under the committee will also be examining the additional activities and structural benchmarks arising from the first IMF Review under the standby arrangement.
A total of nine structural benchmarks have been added under the public sector transformation, public bodies and public service reform areas.
The PSTOC, a broad-based committee comprising stakeholder representatives of the public and private sectors, trade unions and academia, was set up by Prime Minister Andrew Holness in November of last year to review the Government’s implementation of the public sector transformation-related activities and structural benchmarks and report to the public.
The committee’s first report on January 18 outlined the focus of its work to strategically link public sector transformation to the overall macroeconomic strategy for growth and development.
[Source: The Jamaica Gleaner]