Economist: Don't cut budget

Debbie-Ann Wright, News Editor
The Gleaner/Power 106 News Centre

Economist Dr. Davidson Dawey says he is hoping the budget which is presented tomorrow will not be drastically less than last year’s as he says this could stifle growth.

Finance Minister Dr Peter Phillips is expected to table the Estimates of Expenditure for the fiscal year tomorrow, following the state opening of Parliament.

Several commentators have predicted that the government will have to contain spending as it tries to get the economy back on track.

Dr. Dawey says reduced public spending will result in further contraction in the economy.

He is urging the government to concentrate spending on education and agriculture, which he says have the potential to drive development.

He also says given recent reports of increased business confidence, the government should also seek to provide incentives to the private sector.

The National Budget is traditionally tabled by April, but Dr Phillips said it had to be delayed because of the change of administrations, the need to review the Estimates, and the negotiations with the International Monetary Fund (IMF).

The Standing Finance Committee of the House is scheduled to examine the budget from May 15 to 17.

debbie-ann.wright@gleanerjm.com