By Andrew Laidley
KINGSTON, Jamaica, (JIS) – Fiscal discipline will continue to play a critical role in Jamaica’s economic strength and future prosperity, says minister of finance and the public service, Fayval Williams, opening the budget debate for fiscal year 2025/26 in the House of Representatives on Tuesday.
Drawing on the nation’s journey from reliance on external support to self-sufficient financial management, minister Williams underscored the government’s dedication to safeguarding the hard-won gains for the Jamaican people.
“We have come a long way. We are balanced on the ‘big-people’ bicycle with our own weight and managing the complexities of Jamaica’s Budget with its many competing demands,” minister Williams said.
Citing the recent affirmation of Jamaica’s ‘BB-‘ credit rating with a Positive Outlook by international credit rating agency Fitch, she noted the significance of this endorsement for investor confidence and economic stability.
“Fitch said its Positive Outlook reflects the fact that Jamaica has stronger governance than the peer median,” she said, noting that Fitch also acknowledged Jamaica’s significant progress with debt reduction and sound fiscal framework.
Minister Williams announced that the debt-to-GDP ratio is projected to fall to 68.7 percent by the end of FY2024/25, the lowest in almost 30 years; further acknowledged the Independent Fiscal Commission’s assessment that Jamaica’s fiscal position and policy is sustainable and that the legislated debt-to-GDP target of 60 percent or less by FY2027/28 is expected to be met.
Minister Williams celebrated the country’s strong economic performance, with unemployment rate at a record low of 3.5 percent as of October 2024.
“This is a significant achievement that we should not let anyone diminish,” she pointed out.
Similarly, the minister cautioned against calls to deplete the net international reserves (NIR) for short-term gains, emphasising its crucial role as a financial safety net against external shocks. The NIR stood strong at US$5,583.7 million as of December 31, 2024.
The minister also noted that overall inflation remains within the target range of four to six percent.
