PRIME Minister Bruce Golding has signalled that the new budget will require that Jamaicans undergo ‘a dramatic change in culture’.

Speaking at the Scotia DBG Investments Corporate Investment Seminar on Friday at the Terra Nova All- Suite Hotel in Kingston, Golding said that the new budget, less than a week away from being tabled in Parliament, will reflect the strength of the government’s resolve to curtail spending, address ‘fiscal disorder’ and put Jamaica on a path to economic recovery.

“Our overarching objective must be sustained economic growth, growth that will create jobs, increase foreign exchange earnings, boost our revenue so that we can eventually graduate from deficit to surplus, so that we can begin paying down our debt, so that we can be able to invest more in infrastructure and improve the delivery of government services,” said the prime minister.

He said for this reason, the government will remain tough in the face of challenges to this objective and that everyone will have to make sacrifices.

“We are going to see reflected in the new budget that is going to be tabled into parliament next week Thursday, the strength of our resolve, that however difficult it might be, and however unappealing to voters those decisions might be, those are decisions we are going to have to take,” Golding said.

“Some of the options that might have been available to us five years ago, 10 years ago, 15 years ago, they are no longer available and thank God they are not because we are going to have to start doing the things that we need to do in order to get this economy right,” he added.

Golding disclosed that the government will have just $30 billion remaining for investment in the economy after debt servicing and recurrent expenditure such as wages are paid for the next financial year.

With the public sector wage bill having increased by 50 per cent in two years and outstanding public sector retroactive and reclassification bills amounting to $27 billion, he said just $2 billion has been allocated in the upcoming budget to pay down on this cost. Government had announced previously that provisions for retroactive payments due to teachers and the reclassification of nurses and other health sector workers cannot be paid at one time, and will have to be spread over the next few years.

Against that background, the prime minister stressed that public sector workers must be mindful of the context within which they make demands for salary adjustments.

“We need a change for example in the approach towards public sector wages. Negotiations cannot be indifferent to the inability to pay or the devastating consequences to the economy if we were to pay,” Golding said, adding that settlements that are to be worked out for disbursement this year must fit within the resources of the government.

“We just are not going to be able to accommodate all of the demands which are made,” he said.

The Prime Minister also suggested that the tax aversion of some business people must be changed. He said some professionals complain that they have been harassed by the tax authorities but when asked to provide documentation showing what taxes are paid, they begin to shy away.

He challenged the financial sector to “shake from its feet the dust from the era of high interest rates and heavy government borrowing” and called for a unity from the sector towards serious lending and a share in profitable ventures.

“The job of building this enterprise we call Jamaica belongs to all of us. I urge you to do your part,” Golding said. “Building confidence is an intangible but essential prerequisite for growth. Low Interest rates will not lead to investments unless investors believe that they will remain low.”

Golding also spoke to the larger Jamaican population, which will face a bus fare increase come the next financial year. He said that the government has provided a $600 million subsidy in the budget for the operation of the Jamaica Urban Transit Corporation (JUTC) but that this is already inadequate for the operations of the company.

“That is as much as the budget can provide, but that is not enough to cover the losses that JUTC is incurring. The rest must come from the fare that it collects, there is no other way.”

“You can expect wild outburst when bus fares are increased shortly, but if they are not increased how are the buses to run?” Golding asked.

Making reference to the misplaced priorities of some Jamaicans, he blasted those who are willing to spend “limitless funds” on unessential items such as phone cards, but are not willing to sacrifice for the critical changes that are necessary to enable the economy to recover and grow.

“You have people come to me in my constituency, they need help for back to school (items), and when I ask them to show me the school voucher they have to rest three phones on the desk before they can have a hand free to go and find the school voucher,” Golding said.