Finance Minister calls out those riling up the public for using NIR for short-term gain

Durrant Pate/ Contributor

The Government seems to have accepted a proposal from Jamaica’s newly created Fiscal Commission to have the country’s revenue measures tabled along with the other budget documents.

This would represent a significant departure from the current practice when the revenue measures are outlined when the finance minister, opens the budget debate each year. Making her maiden budget debate presentation in parliament this afternoon, Portfolio Minister, Fayval Williams hinted that the administration is siding with the suggestion made by the Fiscal Commission on the need to have the presentation of the fiscal balance of the public sector and the revenue measures, tabled with the other budget documents. 

This suggestion comes even though it has never been done before by any other government. The Fiscal Commission, which came into existence on January 1, 2025, to assess the national budget and issue an opinion on the credibility of the Estimates of Expenditure.

2025/2026 budget assessed as credible

This role was previously done by the Auditor General’s Department for many years. Minister Williams disclosed that based on the Fiscal Commission’s assessment, “Jamaica’s fiscal position and policy is sustainable 2027/2028 and is expected to be attained and is achievable…We are ending fiscal year strong 2024/2025, where unemployment is down and employment is up at the end of October 2024. 

The Statistical Institute of Jamaica (STATIN) reported lowest unemployment on record of 3.5%. “Let’s pause and think about this. It’s a significant achievement; no make no bwoy, no gal, no one diminish this. No one, no one should diminish this achievement of this government,” Williams said. 

She drew data from STATIN showing the improvements being made in employment and unemployment, noting that in October 2013, overall employment was 14.9% compared to 3.5% as at October 2024. This remark drew thunderous applause from the government side with the Finance and Public Service Minister advising that female unemployment in October 2013 was 20.5% but has been lowered along with male unemployment. 

Williams remarked, “More persons working in 2024, and it is a result of the good policies by the Prime Minister, Andrew Holness-led government, today in 2025 jobs abound. We can’t find workers. We are ending 2024/25 strong with debt to gross domestic product to be lowered to 60%.

NIR is strong and should not be disturbed

She trumpeted that confidence in the Jamaican economy is strong, noting that once confidence is lost it’s hard to come back. She singled out the Net International Reserves (NIR), which is strong at US$5.6 billion as at December 2024, having been growing since 1992.

The Finance and Public Service Minister lamented, “it is irresponsible for some people to rile up others to use the NIR for short tern gain,” making reference that the purpose of NIR is to act as a financial safety providing cushion against external shocks, to maintain stability in domestic currency by intervening in the domestic currency market.

“Riling up Jamaicans to demand that the NIR be spent is like telling Jamaicans to go party with their rent money” with Prime Minister Holness bellowing, “exactly” to this remark. In concluding, Minister Williams contended, “When the music is done at the party, what u goanna do? If they mean Jamaica any good, they would stop encouraging this thought [using the NIR for short term gain].”