Gov’t focused on maintaining fiscal discipline – Williams
KINGSTON, Jamaica – Minister of Finance and Public Service Fayval Williams says fiscal discipline will continue to play a critical role in Jamaica’s economic strength and future prosperity.
Drawing on the nation’s journey from reliance on external support to self-sufficient financial management, Williams underscored the Government’s dedication to safeguarding the hard-won gains for Jamaicans as she opened the Budget Debate for fiscal year 2025/26 on Tuesday.
“We have come a long way,” Williams stressed.
“We are balanced on the ‘big-people’ bicycle with our own weight and managing the complexities of Jamaica’s budget with its many competing demands,” she noted.
Citing the recent affirmation of Jamaica’s ‘BB-‘ credit rating with a Positive Outlook by international credit rating agency Fitch, she noted the significance of this endorsement for investor confidence and economic stability.
“Fitch said its Positive Outlook reflects the fact that Jamaica has stronger governance than the peer median,” she said, noting that Fitch also acknowledged Jamaica’s significant progress with debt reduction and sound fiscal framework.
Williams announced that the Debt-to-GDP ratio is projected to fall to 68.7 per cent by the end of FY2024/25, the lowest in almost 30 years.
She further acknowledged the Independent Fiscal Commission’s assessment that Jamaica’s fiscal position and policy is sustainable and that the legislated Debt-to-GDP target of 60 per cent or less by FY2027/28 is expected to be met.
She noted the country’s strong economic performance, pointing out that at October 2024, the unemployment rate was at a record low of 3.5 per cent.
“This is a significant achievement that we should not let anyone diminish,” she stressed.
Similarly, the minister cautioned against calls to deplete the net international reserves (NIR) for short-term gains, emphasising its crucial role as a financial safety net against external shocks. The NIR stood strong at US$5,583.7 million as at December 31, 2024.
The minister also noted that overall inflation remains within the target range of four to six per cent.
– JIS
