Jamaica’s debt to gross domestic product (GDP) ratio for the upcoming fiscal year 2025/26 will be 68 per cent, says Prime Minister Andrew Holness.
Addressing a Diaspora Townhall in Barbados on Friday (February 21), following his participation in the 48th Caribbean Community (CARICOM) Heads of Government Meeting, Holness said it will be the lowest since the 1970s.
“It has been a struggle, because it means the roads that you would have liked, the hospital situation, housing situation, the water situation, you couldn’t do it. But now at 68 per cent of GDP, if we decided to pay off the debt today, we would still have something left over,” Holness stated.
He reasoned that the more debt Jamaica pays off, the more space will become available for sustainable expenditure.
“From the tax revenues collected in 2014, 33 per cent went towards paying interest. You know what that percentage is today? 18 per cent. So, in other words there’s more of the tax revenue to spend on the things that people want,” Holness explained.
He reasoned that the government must strike a delicate balance between managing the economy and investing in infrastructure.
“I want to fix your road now, but I want to fix your road now without having to come back to you and say I went to borrow, I have to pay back for it and so I have to put a little bit more tax on you,” Holness said.
He underscored that Jamaica has been managing its finances well and is now considered the poster child for fiscal management.
“We are now setting the stage for financing our development from our resources – that’s a big thing. The other challenge is how do we expand our resources to have faster and greater development,” Holness said.
