Dear Editor,

The International Monetary Fund (IMF) has so far agreed to lower the budget primary surplus by 0.5 per cent from 7.5 per cent to seven per cent of GDP, releasing an extra $8 billion into the economy; an economy which needs growth to produce jobs, domestically driven growth that is not the hoped for and financially draining version base on inward foreign investment.

The Jamaica Labour Party must now, as a start, lower the primary surplus to five per cent in the coming budget, releasing altogether $45 billion to spur that growth and give the ordinary person a break from the continued austerity. There is every reason to think five per cent reasonable; after all, Greece is only asked to find four per cent. Jamaica’s 7.5 per cent was the largest primary surplus demanded by the IMF for any country.

This $45 billion could fund the proposed PAYE tax relief (costing $15 billion if on average the 118,000 workers get relief from $500,000 at a 25 per cent tax rate), make tertiary education free (costing $20 billion with 10,000 students per year X 4 years X $500,000 fees), and leave another $10 billion to improve health provision, schools and rural roads.

If at the same time the new Government could get really serious about tax collection, addressing both avoidance and evasion, there would be even more to boost the local economy and services.

Paul Ward

Campaign for Social & Economic Justice

Kingston 7

pgward72@gmail.com