Information Minister, Senator Sandrea Falconer, says the Simpson-Miller Administration would welcome a further reduction in the primary surplus target, to 6.8-percent as recommended by the World Bank.
In an update on Jamaica’s economy published this week, the World Bank says the Government should consider easing austerity measures to focus on growth.
It notes that government spending is programmed to increase marginally between now and 2020.
It says the projected marginal increase is not enough to meaningfully impact growth.
Minister Falconer today defended the Economic Reform Programme being implemented by the government.
In its report this week, the World Bank recommended that the Government seek to place more focus on growth inducement measures.
It says that if the Government shifts focus from austerity to growth inducement measures, the economy could grow from the current projection of 1.5-percent for this fiscal year, to 4.5-percent in five years time.
The Government has projected that the economy should be growing by 2.7-percent in the year 2020.
Senator Falconer says the Government never expected the economy to show robust growth under the IMF programme.
The Information Minister says the government would welcome a further reduction in the primary surplus target from the re-adjusted mark of 7.25-percent.
A further reduction in the primary surplus target to 6.8 percent would give the Government an extra $16-billion to spend on capital projects over the next two years.