Here are a couple of simple facts: 1) If much more than 50% of the country’s Gross domestic product (GDP) is used to service interest payments on the nation’s immense debt, then there will and must be revenue shortfalls .2) Under the same scenario, the Government looks for additional revenues through the only source it absolutely should NOT, more taxation. 3) .
Vale Royal residence of the Jamaican Prime Minister.
Why? Taxation may initially increase revenues collected, but will invariably lead to a drop-off in economic activity, as it inevitably will. Taxation constricts economic activity which results in less revenue collected. In the case of Jamaica this presents a mammoth crisis as the nation is caught in a vicious cyclonic wave as a result of the particulars I just laid out. The nation will first have to come to grips with the reality that taxation and spending is not the way to grow an economy. It must be through low crime, investment opportunities, education, eliminating corruption and bureaucratic impediments. I am not sure this Administration is capable of figuring this out. Part of any hope for economic salvation for Jamaica must be first to lower crime , then ditch the (IMF). Ditching the IMF is imperative if Jamaica is to start on a path of economic growth, it must shed that parasitic agency.
With thirteen more IMF tests to go on this Extended Fund Facility (EFF), it will be interesting to see what happens going forward. I think the real pitfalls and obstacle courses are ahead re the IMF. To date, I have not seen a Third World country that has been successful with the IMF conditionalities and austerity programs. So, I am of the perspective, like other countries that have not fared well, Jamaica will do the same. Also, where is the GROWTH PLAN of the government ?
My point exactly my friend !!!