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published: Thursday | April 10, 2008
For many analysts, Audley Shaw's maiden Budget presentation as finance minister will be measured against what he told the country while he sat on the Opposition benches.
In his contribution to last year's Budget debate, Shaw outlined what he dubbed 'A clear alternative'.
In that presentation, he articulated what he said was the Jamaica Labour Party's plan to "deliver economic growth and development to the people of Jamaica, including achieving 6-10 per cent growth over the medium to long term."
Shaw's Alternatives (2006)
1. A credible debt management strategy - Impose constitutional limits on borrowing; secure lending from multilateral agencies on Jamaica's terms; carry out a comprehensive audit of the government's assets; use of the proceeds of PetroCaribe to pay down on debt; secure a partnership with the private sector on debt and interest rate reduction; 'securitise' foreign currency fiscal revenue; explore the issuance of 'Diaspora Bonds'.
2. An energy policy that reduces the cost of electricity to industrial, commercial and household uses.
3. A more efficient government bureaucracy geared to serving the people well.
4. Tax reform for easier administration, more investment and more efficient services for the people.
For many analysts, Audley Shaw's maiden Budget presentation as finance minister will be measured against what he told the country while he sat on the Opposition benches.
In his contribution to last year's Budget debate, Shaw outlined what he dubbed 'A clear alternative'.
In that presentation, he articulated what he said was the Jamaica Labour Party's plan to "deliver economic growth and development to the people of Jamaica, including achieving 6-10 per cent growth over the medium to long term."
Shaw's Alternatives (2006)
1. A credible debt management strategy - Impose constitutional limits on borrowing; secure lending from multilateral agencies on Jamaica's terms; carry out a comprehensive audit of the government's assets; use of the proceeds of PetroCaribe to pay down on debt; secure a partnership with the private sector on debt and interest rate reduction; 'securitise' foreign currency fiscal revenue; explore the issuance of 'Diaspora Bonds'.
2. An energy policy that reduces the cost of electricity to industrial, commercial and household uses.
3. A more efficient government bureaucracy geared to serving the people well.
4. Tax reform for easier administration, more investment and more efficient services for the people.
- a. Reduce corporate income taxes in line with personal income taxes, and over time when the economy is growing in a sustainable way, further reduce corporate and personal income taxes in order to further stimulate investment and savings.
- b. Innovative savings instruments will also be developed, including special tax credits to encourage first-time home ownership.
- c. Simplify the tax system and expand the tax net. This process will include the merger of the NHT, education taxes, HEART and NIS deductions into one social security tax.
- e. Reduce stamp duties and transfer taxes on land transactions as well as eliminate estate duties (death tax).