Seaga Presents Growth Budget for 1987

prime minister edward seaga last night presented a budget of 6.9 billion jamaica dlrs, the largest in the country’s history, which projects increases in capital spending and continued divestment of state companies.

In a nationally televised speech to the parliament, the prime minister, who is also minister of finance, said jamaica’s gdp grew by four pct, the highest level in 15 years, while unemployment stood at 23.6 pct, down from last year’s 26 pct. Inflation, meanwhile, was 9.4 pct, as compared to 19.7 pct two years ago.

Government revenues were up by 419 mln jamaica dlrs, to 4.3 billion, enough to finance the entire recurrent expenditure of 3.7 billion dlrs, with a 666 mln dlr surplus.

Seaga said that with financial accounts in order, the government will proceed to reduce the country’s debt service ratio from the current level of 49 pct of gdp to 25 pct over the next five years.

During this period, he said, growth would be targetted at three to four pct.

The 6.9 billion dlr budget, which represents an increase of 18 pct over last year’s 5.8 billion, will be financed by borrowing of 8.868 billion dlrs and estmated revenue of 1.385 billion.

Seaga said 1.835 billion of the budget will go to finance a government capital investment program. The plan, which represents a 10.3 pct increase over last year, projects greater spending on health, education, housing and infrastructure. Some 818 mln dlrs in revenue to finance the budget will come from the government’s divestment program, which seaga said will be stepped up in 1987.