KINGSTON, Jamaica- Prime Minister Andrew Holness says that the measures introduced by Minister of Finance and the Public Service Dr  Nigel Clarke, in opening the 2024/25 budget  on Tuesday, represent a balance of “responsiveness and responsible governance.”

In a release from the Office of the Prime Minister (OPM), the prime minister said that it is breaking the trend of fiscal mismanagement that has plagued Jamaica, and was a feature of past administrations. He also noted that, instead, his government’s macroeconomic stability has paved the way for initiatives such as an unemployment insurance scheme to benefit Jamaican workers.

“The Jamaican government is listening. That is the message being sent by the measures announced to stimulate economic growth and further ease economic burdens,” he stated, describing the budget as one to build a caring economy on.

He recalled that, in opening the 2024/2025 Budget Debate in the House of Representatives on Tuesday,  Dr Clarke announced a number of initiatives aimed at enhancing the lives of Jamaican citizens, while remaining fiscally prudent so as not to endanger the economy.

He noted that through the economic management of Dr Clarke, Jamaica has been able to present a budget of with no new taxes for seven consecutive years, and that this has been possible due to the government’s emphasis on growth and economic stability, “even in the face of global challenges and external shocks such as the Covid-19 pandemic, and inflation”.

The 2024 budget features key announcements totaling $1.3 trillion including: the removal of guarantors for students applying to the Students’ Loan Bureau, and beginning April 1, 2024, the Student Loan Bureau will no longer require guarantors for students to access tertiary financing from the Student Loan Bureau.

This, he argued, enabled citizens of low socio-economic background, who are unable to get guarantors, access to tertiary education loan. In addition, the government has made available 4,200 grants of $60,000 each to low-income applicants.  To support this initiative $1 billion have been moved to the guarantor reserve fund.

Holness also noted that taxpayers who earn less than $1.5 million  will receive a reverse tax credit of $20,000 at the end of the financial year; the income tax threshold has been increased from $1.5 million to $1.7 million, annually, which meant that, if someone earns $1.7 million, more or less, they will have no need to income tax.

He listed a number of issues which were tabled by Dr Clarke in the House of representatives, last week, including: General Consumption Tax (GCT) being removed from imported raw food items including fruits and vegetables, making these products more affordable for Jamaicans; Annual Pension Exemption and Age Relief Exemption increased from $80,000 to $250,000 each, for a combined total of half a million dollars of additional relief for our seniors; The threshold for duties (de minimis value) for imported items has been increased from  US$50 US$100; effective April 1, 2024 the passenger duty free threshold for personal/household effects not imported for sale or commercial exchange will be increased from US$500 to US$1,000 at the port.

According to the release,  Holness emphasises that these measures represent a balance of responsiveness and responsible governance, breaking the trend of fiscal mismanagement that has plagued Jamaica and was a feature of past administrations.