|
|
I have circulated a matrix indicating the major macro economic targets for the medium term. We have shown the data for fiscal year 98/99, and as was done in the recent past, we have provided targets for each of these indicators for a three-year period. Hence, the country can explicitly see what are the main targets for not just the forthcoming fiscal year, but up until March the year 2002. Most of the targets are standard. I draw attention to the three significant ones, namely, inflation, GDP growth, and the fiscal deficit. There can be no one who can question the Administration's commitment to the containment of inflation, and all I wish to say is that commitment will continue during the medium term and beyond. The fact is that the achievement of the inflation targets which has given us the credibility with the labour force, and hence, the basis for speaking of a climate to facilitate investment. As regards the public sector deficit, I have spoken on various occasions, including this presentation, of the importance of the returning of the financial accounts to have surplus. The cost of the intervention in the fiscal sector has been enormous and it will be with us for the medium term. A major contributor to meeting these costs is the rate at which we can divest Government assets. Not only those acquired as a result of FINSAC's intervention, but others which were acquired pre-FINSAC. Nonetheless, the commitment is to return the fiscal to a surplus by financial year 2001/02, and maintain this surplus in future years. The ability to achieve this surplus and maintain it, is contingent on our containing expenditure growth, particularly with regard to reducing debt servicing costs, as interest rates come down. This will allow us to honour our obligations and direct additional resources to the Capital Budget which is a major deficiency of the Budget for 99/2000. What of growth? What is the basis for confidence that the economy will grow in this fiscal year and in the medium term. In analysing the reasons for negative growth in 1998, we have outlined the major reasons for hope. We have seen out the worst of the financial sector problems. We have taken concrete steps to revitalize the agricultural sector. There are some important investments coming on stream in Tourism, e.g., Ritz Carlton and a new Hedonism at Runaway Bay. Finally, the continued reduction in inflation levels provides the basis for a more rapid downward movement in interest rates, and hence, the cost of working capital. In summary, the task which we have for the medium term, in terms of macro economic management, is as follows:
From my own perspective, during this fiscal year, I intend to allocate an increased percentage of my time to these two latter objectives. We are confident that when we report a year from now, God willing, a similar success which marked the attack on inflation, and the stabilization of the exchange rate system will be the result. || Previous | Table of Contents | Next ||
|
