GDP fell 2.3 per cent last year, says PM

[Lazie]

Jamaica Observer

Posted: 4/1/2009 2:45:09 PM

WITH Jamaica suffering the ill-effects of the global financial crisis, Prime Minister Bruce Golding has disclosed that gross domestic product fell 2.3 per cent last year, according to the latest available statistics.

Golding said that like all countries in the Caribbean, Jamaica is experiencing job losses, business closures and the erosion of recent gains made in reducing the level of poverty significantly.

Addressing an International Labour Organisation (ILO) conference on the recession and the regional workforce, held at the Jamaica Pegasus Hotel in New Kingston this morning, Golding called for structural reforms to help the region survive the crisis.

He said that governments must demonstrate the political will, take tough decisions and be open and frank with the public, private sector, and trade unions.

[Lazie]

$21 bil budget deficit from drop in Gov’t revenues

The fall-off in inflows into the country's coffers has worsened with the budget deficit increasing to a whopping $21 billion.

Figures released this week by the Ministry of Finance show the authorities have collected far less than was projected between April last year and February this year.

Two hundred and sixty one billion dollars was expected to be collected but instead, $240 billion entered the coffers.

The biggest decline was seen in tax revenues, which are down $16 billion arising from fall-offs in intake of General Consumption Tax, Stamp Duty and motor vehicle licences.

Non-tax revenue was $747 million below target and inflows from the bauxite levy declined by $3.4 billion.

This has not come as a surprise in light of the sharp downturn in the bauxite/alumina sector due to the decision by some mining companies to scale down their operations.

[Mosiah]

snicker

[Lazie]

snicker

People on this forum have been misunderstanding some of your posts lately ... care to explain the above?

[Mosiah]

well, there was a lot of hoopla and bell ringing for the tax amnesty, so, i was just wondering...snicker...pardon me!

But I guess we can always blame it on the bauxite companies.

[Lazie]

well, there was a lot of hoopla and bell ringing for the tax amnesty, so, i was just wondering...snicker...pardon me!

But I guess we can always blame it on the bauxite companies.

I thought you were brighter than that. The tax amnesty added how many more people to the pool.

You remember there was a Stimulus Package announced in December? Well, as one article pointed out, "Rescue plan to bleed Government $862m." Tax breaks to hotels, christmas duty relief etc. on top of that, people were buying less hence a reduction in GCT revenue. Obviously you weren't paying attention.