THE spending on road repairs ahead of the visit of US President Barack Obama represented an appropriate investment, reasons co-chair of the Economic Programme Oversight Committee (EPOC) Richard Byles.

The spending comes within the context of concerns by EPOC of government missing its 7.5 per cent primary surplus target as part of International Monetary Fund (IMF) conditionalities.

“In everything, you have to invest to get a return. I think that the investment we put out to welcome Obama, who is important — not just the most powerful leader in the world, not just as the leader of the largest economy in the world, but also as the first black president visiting a black country — that it was very appropriate and it will pay for itself,” stated Byles in response to a Jamaica Observer query at the Sagicor headquarters in Kingston on Tuesday.

President Obama visited Jamaica last week for the Caribbean Community (Caricom) US summit. Ahead of the visit the National Works Agency through contractors removed the worn asphaltic concrete surface along Marescaux Road, Heroes Circle, Caledonia Avenue, Oxford Road and Old Hope Road, sections of Mona Road, sections of Sir Florizel Glasspole Highway and sections of the Michael Manley Boulevard that lead to Camp Road.

Byles was told that the road repairs comprised about 8.0 per cent of the total road repair budget for the fiscal year.

“But I do not know how accurate that figure is,” he cautioned about the repair spend not yet officially tallied. “Most of that was concentrated in Kingston so it looks as if there was a lot of road repairs.”

Obama announced the formation of an energy fund to finance clean energy projects for the region. He also announced a youth fund for the region.

“The focus brought by the visit of Obama is highly positive,” said Byles, responding to another media query. “The fact that Obama came here sends the right message and his endorsing of the [IMF] programme is always good PR for any investor coming to Jamaica. So he didn’t have a string of US investment behind him, but the experience will play very strongly in the US market.”

Data provided by EPOC at the monthly press briefing shows that for the period April 2014 to February 2015, the country’s primary balance stood at $78.7 billion or $4.8 billion lower than budgeted. A primary surplus occurs when the Government’s income exceeds its expenditure. The net international reserves (NIR) stood at US$2.3 billion at the end of February. The NIR represents contingency funds, which can enable the country to survive severe external shocks and cope with shifts in investor confidence and natural disasters. It also acts as a measure of foreign goods and services that can be purchased over a period of time.

In the meantime, at the end of February, the Government’s tax revenues were $318.6 billion, or $12 billion lower than the IMF target.

“The fiscal performance in February was disappointing, leaving an enormous gap to be filled in March if Jamaica is to meet the IMF primary surplus target of $121 billion,” noted Byles, who added that Financial Secretary Devon Rowe remains optimistic about meeting the targets. “However, we are advised by the financial secretary that based on preliminary numbers for March, to which he is privy, he expects Jamaica to achieve the March primary balance target.”