Opposition Leader, Dr. Peter Phillips, says the government should change its wage target to a range, rather than a specific percentage of GDP.
The government has committed to spending no more than 9-percent of GDP on public sector wages, as part of its agreement with the IMF. The new deadline to reach that target is the end of this fiscal year, after multiple missed deadlines to contain wages.
Dr. Phillips is suggesting the country should abandon the strict 9-percent target, which he says is almost impossible, and instead pursue a range.
Dr. Phillips says having missed the target several times, it will be difficult for Jamaica to attain.
He argues that in order to achieve the target, critical areas which need to be expanded would instead be cut.
Dr. Peter Phillips was speaking last week at the Jamaica Stock Exchange’s 14th Annual Investment and Capital Markets Conference in New Kingston.