Fiscal Policy
By definition, fiscal policy are the changes in government expenditures and taxation in order to achieve macroeconomic goals. Just recently, Jamaica has suffered drastic changes in their fiscal departments and leaders. In fact Simpson Miller was the prime minister during September of 2007 when inflation was at 5.8, unemployment was low and interest rates were trending down. However, Miller states now “In terms of our economy and country, the ship is sinking and it is as if there is no captain” this statement does reflect some truth. Since a new election of the most current prime minister, Jamaica is in debt J$1.4 Trillion.
With this being said, the news article from March of this year discussed the hopes for increased government spending ahead of new budget. From what I read, this was encouraged to help pay off the reported debts. However, with this package comes a slashing decrease of money spent on police officers of around J$1.7 Billion. They have requested a government spending to be at J$31.5 Billion (US $352.8 million). This is an increased amount from the previous fiscal year. This has been estimated to have an interest amount owed of around J$187 Billion which could add a debt of J$370 Billion. Because of this policy debt can potentially increase due to an accrued interest and police enforcements will probably suffer job cuts which could increase crime due to less enforcement. I understand that this is an attempt to pay off some debt the country owes to other countries and it's own but it does seem like it could give a negative impact on its economy.
Direct Link : http://www.caribbeandailynews.com/jamaica-government-seeks-increase-in-spending-ahead-of-new-budget/
With this being said, the news article from March of this year discussed the hopes for increased government spending ahead of new budget. From what I read, this was encouraged to help pay off the reported debts. However, with this package comes a slashing decrease of money spent on police officers of around J$1.7 Billion. They have requested a government spending to be at J$31.5 Billion (US $352.8 million). This is an increased amount from the previous fiscal year. This has been estimated to have an interest amount owed of around J$187 Billion which could add a debt of J$370 Billion. Because of this policy debt can potentially increase due to an accrued interest and police enforcements will probably suffer job cuts which could increase crime due to less enforcement. I understand that this is an attempt to pay off some debt the country owes to other countries and it's own but it does seem like it could give a negative impact on its economy.
Direct Link : http://www.caribbeandailynews.com/jamaica-government-seeks-increase-in-spending-ahead-of-new-budget/
