Opposition Leader, Andrew Holness says the warning from the International Monetary Fund that the Government of Jamaica will soon face “undesirable options” of more taxes or jobs cuts in order to meet the wage to GDP ratio of 9-percent is ominous.
Mr. Holness says the Simpson Miller-administration must heed the warning of the International Monetary Fund and move swiftly to reduce the rate of unemployment and grow the Jamaican economy.
In its country report this week the Washington-based multi-lateral said given the new public sector wage agreement, the Government will soon face “undesirable options” of more taxes or jobs cuts in order to meet the wage to GDP ratio of 9-percent.
Andrew Holness says that’s an ominous warning.
This week the Executive Board of the IMF urged the Government to focus on reducing unemployment and achieving and growing the country’s economy in a significant way.
Mr. Holness says he’s not at all surprised.
Mr. Holness says the Government has been pursuing a policy of fiscal consolidation, characterized by massive expenditure cuts and burdensome taxation.
He says this approach is unsustainable and is not a long term solution.
He says while there was much fanfare around the recent visit to the island by Barack Obama, the government appears to have ignored the message of the US President.