KINGSTON, Jamaica — Minister of Finance and the Public Service, Audley Shaw, says that Jamaica’s public debt is expected to be 115 per cent of GDP by the end of March this year.

He said that the figure at the end of March next year is projected to be 108.6 per cent of GDP, which will bring the country much closer to the sustainable legislative debt target of 60 per cent of GDP by 2025/26.

However, the minister pointed out in the House of Representatives yesterday that this is based on a new definition of public debt that will become effective on April 1.

He said that the legislation in effect identifies public debt as the consolidated debt of the Central Government, Bank of Jamaica and Government Guaranteed External debt. But, the new definition of public debt that will become effective on April 1, identifies public debt as the consolidated debt of the specified public sector, except the Bank of Jamaica.

The Specified Public Sector is comprised of the Central Government and Public Bodies, excluding any Public Body certified by the Auditor General as primarily carrying out functions that are of a commercial nature. All Government guaranteed debt is therefore captured in this definition.

The new public debt definition is consistent with the definition being utilised by the International Monetary Fund (IMF), under the new precautionary Stand-By Arrangement (SBA).

Shaw said that the new definition is in line with international standards, and is also consistent with the Public Sector Debt Statistics Guide developed by the IMF.

“This is a most welcomed development,” Shaw stated.

Balford Henry