OPPOSITION spokesperson on finance Julian Robinson says he is not satisfied with Finance Minister Dr Nigel Clarke’s explanation as to how the $1.3-trillion budget for 2024/25 will be financed.

Robinson, who was making his contribution to the 2024/25 Budget Debate in the House of Representatives on Thursday, said he had an issue with the lack of details on the Government’s plan to securitise some of its assets to help fund the $25 billion in tax cuts that were announced earlier this week.

“On Tuesday the [finance] minister spoke for four and a half hours, and in that time failed to explain fully and transparently how the budget would be financed in terms of this particular item,” Robinson said.

“He did state that the revenue measures would be financed by $25 billion in estimated flows from the securitisation of receivables, but that was it; there were no details given,” he said. In total, the Government plans to securitise $45 billion in receivables to get monies now to finance the upcoming budget. Some $20 billion of the amount will go to the capital budget and $25 billion to support the revenue measures.

Again stressing the absence of details on the arrangement, Robinson went on to speculate about what the “securitisation of receivables” would entail, surmising that it could mean that the Government has some money owed to it, some assets or some future earnings that it has sold upfront and has gotten the cash for selling it upfront at a discounted rate.

“I am saying, Minister, it is not acceptable to come in the House to predicate the revenue measures on a particular transaction and not provide to the House and the people of Jamaica any details about that transaction,” he said.

Robinson further argued that it is not known what receivables have been securitised, the quantum, to whom, the discount that would have been given or any of the terms of that arrangement.

“We don’t know whether it’s a one-off transaction, we don’t know whether there are going to be flows not just this year but flows which would continue for the future years,” he said.

He further argued that the minister of finance has a responsibility, a duty of care to inform the Jamaican people of the details of the arrangement.

Continuing, he said: “Forty-five billion dollars is a lot of money in any way, shape or form and right now none of us know the details of it. It is important that the Jamaican people be treated in a transparent manner and that you explain what you are doing with their assets because the assets that have been securitised are owned by the Jamaican people; I don’t know what those are but you have to tell us,” he said.

He said that while Dr Clarke has pointed to the issue of market sensitivity in the matter, he argued that “quite frankly market sensitivity can’t trump the need for transparency on an issue like that”.

In the meantime, commenting on the overall budget presentation by Dr Clarke, Robinson said that while there are elements which the Opposition will agree on and support, “they failed to alleviate the widespread struggles and adversities faced by the vast majority of the Jamaican people”.

He said that the budget does not in any significant way change the reality faced by the majority of the Jamaican people.

“On this side, we firmly believe that fiscally responsible economic transformation and creative, bold leadership are key to break free from the stagnant cycle of low growth that has affected the Jamaican economy that has restrained our people from realising their full potential and preventing transformation into a nation of choice to live work, raise families. Time come. We stand ready to take on that challenge,” he said.