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As indicated in the Opening Presentation, this was a difficult Budget to craft - all ministries could do with more. Opposition Spokesman quoted the Accountant General's comments - basic point being made - failure to adjust the level of expenditure consistent with resources. Not just at the national level but within each ministry/department. Have not sought to hide issues. There are significant challenges to be faced in 2004/2005. However prospects are positive.
In the midst of present situation, despite the positive prospects there is a critical lesson: do not spend before you earn, do not spend before you save. Even after savings are realized, important policy consideration - balance between additional expenditure of paying down debt. Apart from the concrete prospect projects on line, in the pipeline and being conceived, there is a new mood, a new attitude.
Problem areas still remain. Inadequate skill levels, particularly amongst the young. Challenge to provide that group with remedial training. Challenge also to ensure present cohort in school graduate as skilled employable persons. In the midst of bright prospects, physical degradation in inner city areas and deep rural areas. These groups cannot be left behind. Need to focus on intervention. But this Debate is about the fiscal budget. Hence always to be kept in mind is that our creditors will punish us for failure to continue to demonstrate fiscal discipline. Confidence level has increased. Recent debenture closed early as it was over subscribed. External bonds which traded below par mainly because Jamaicans who purchased participation were taxed have moved above par. Issue was reopened yesterday and yielded an additional US$125M. We deliberately chose to reopen this issue as we had explicitly inserted a clause to make interest paid to Jamaican nationals taxable. We have not claimed that everything is going right; we could not claim that everything is going right. Challenges remain but there is no one in this House who could have predicted the positive outcomes we are experiencing given the negative results we faced even six months ago. No one could have predicted that we would have made the deficit target. No one could have predicted that interest rates would have been at this stage. No one could have predicted a recovery in the level of confidence in our external bonds. But this has not come about by chance. This has come about because of focused, dedicated, hard work. There are real prospects for expanding economic activity and employment - reason enough to continue on the path we have outlined. This is not the time for wild speculative policy shifts based on inadequate or out of date information. This is a time to address issues of problems using analysis rather than appeal to "magical" solutions. The public response, both domestic and external, has been rewarding. The message is clear. There is increased confidence in the economy and in our ability to meet the challenges which we face.
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