Sitting of the House of Representatives| Tuesday, March 11, 2025

Madam Speaker, permission to speak from a seat other than my own. Madam Speaker, let me take this opportunity to acknowledge members of the diplomatic corps as they celebrate Diplomatic Week. Let me acknowledge as well members of the international organizations, unions, public sector, media, those online. Let me acknowledge as well all the senators who are here today. Let me take this opportunity to acknowledge my husband, Leo. And our two daughters and family members who are watching online from the United States. I want to acknowledge as well all the people them weh me grow up wid ina Tydixon.  The very rural subsistence farming community in which I was born and where I went to Miss Ivy Long’s Basic School and the government’s Tydixon Primary School. Some of them from Tydixon are here to support me, one of their own who has come from among them to the position of the first female Minister of Finance and the Public Service.

Madam Speaker, my greatest sense of gratitude is to the Tydixon Seventh-day Baptist Church at which my father served as a deacon for many years. Madam Speaker, there was absolutely no story that I and my brothers and sisters could concoct and tell our parents that would cause them to say, ‘oh no badda go a church today’. Even if we had to go to church on a stretcher, Madam Speaker, we had to go. Thank you, Tydixon Seventh-day Baptist Church for instilling lessons that continue to shape my character and guide my footsteps.

Madam Speaker, let me also acknowledge all my colleagues in Parliament this afternoon and let me again say thank you to the Prime Minister for his faith and confidence in me in appointing me to this position. This Prime Minister, Madam Speaker, is a Prime Minister who has appointed women to occupy many high positions in government. In his cabinet are the most women of any other  government including the first woman Minister of Foreign Affairs and Foreign Trade that Jamaica has seen. The Prime Minister has also appointed the first female Cabinet Secretary and the first female Head of the Armed Forces of Jamaica, one of only two women to hold that position globally. Across government, several women also hold important positions such as Permanent Secretaries and Heads of Departments. And so I say, Madam Speaker, what a Prime Minister. What a government, Madam Speaker.

Madam Speaker, I’m very aware that I stand on the shoulders of all the women before me who have occupied high offices in government. Today, I am grateful for the opportunity to be a voice for our women and girls. To my women colleagues in Parliament, I appreciate your support every step of the way.

I could not end my gratitude without saying thank you to all those in St Andrew Eastern who allowed me this opportunity that allowed me this opportunity to represent them in Parliament and to work with them for a better life for them. To my two devoted CPOs who traversed the constituency with me at hours when dogs fraid, I say thank you. Your sacrifice has not gone unnoticed and I want to say thank you to your families for their understanding.

Madam Speaker, let me acknowledge students who are here this afternoon from Fern Court High School, the high school I attended and from which I graduated. I also want to acknowledge all the students who are here from Papine High School, high school in the constituency of St Andrew Eastern. But I must single out the financial secretary and the entire team from the Ministry of Finance and the Public Service who put in your man’s hours to do all that needs to be done at the Ministry of Finance and the Public Service. My job is easier because of their collective efforts. Madam Speaker, there are so many other persons in government and outside of government, too numerous to call by name, that have helped me on this journey and to all of you, my heartfelt thank you. To all I say, I appreciate all your contributions, especially your words of encouragement.

Madam Speaker, this budget for fiscal year 2025-26 reflects the suggestions, the thoughts and the ideas of many Jamaicans. Thank you for all your WhatsApps, your emails and your phone calls. I say to all Jamaicans, we are a government that listens. We are a government that cares. Madam Speaker, today marks the 10th budget presentation for this Prime Minister Andrew Holness-led administration. The significance of this budget is that it is a budget that is happening in an election year, but it is also a budget that comes after many years of discipline in managing the country’s financial affairs. Some of this fiscal discipline initially came with the IMF U.S. $615 million extended fund facility, EFF program, that the government of 2012-2016 negotiated with the IMF. Madam Speaker, those early years of learning fiscal discipline by a government known as run-with-it government were, in my mind, the equivalent of the then government riding a child’s bicycle with training wheels. Madam Speaker, I swear I did not choose the orange t-shirt that the child in the picture is wearing. I don’t even know the people in the picture, but this picture is fitting because those years were really the government of the day learning fiscal discipline. Recall, Madam Speaker, they were the ones that, despite the clear dangerous signs leading up to the 2002 general election, still made the decision to run with it. So this is fitting. This picture is fitting. Those early years of learning fiscal discipline, Madam Speaker, were the equivalent of the government of the day riding a child’s bicycle with training wheels.

We have come a long way since then, Madam Speaker. Since the start of this Prime Minister Andrew Holness-led administration, I’m pleased to say we have been riding a bicycle, but it’s a big people bicycle, and we are balanced. We are balanced on the big people bicycle with our own weight and are managing the complexities of Jamaica’s budget with its many competing demands, all the while navigating the pressures of politics. I swear to you again, Madam Speaker, I do not know these people in the picture either and why they would be showing a V sign. Madam Speaker, we on this side ‘a nuh no run with it’ the government. We are a responsible government. We are safeguarding the hard-won gains of the people of Jamaica so that their children and grandchildren can live a better life in Jamaica.

Madam Speaker, it was only a few Fridays ago, February 21, 2025, that international credit rating agency Fitch signaled to the entire world its continued positive outlook on Jamaica and affirmed Jamaica’s double D minus credit ratings. Credit rating Fitch said its positive outlook reflects the fact that Jamaica has stronger governance than the peer median, meaning, Madam Speaker, Jamaica is above its peer group in governance. Madam Speaker, ‘a nuh me say so, a Fitch international rating agency say so’.  Jamaica is above its peer group in governance.

Fitch also highlighted that Jamaica has made significant progress with debt reduction and that Jamaica has a sound fiscal framework and, Madam Speaker, a strong political commitment to deliver large primary surpluses. Madam Speaker, a primary surplus is how much money a government has left to pay interest on debt, invest in important projects, or save for the future after paying wages and salaries and other recurrent expenses. Fitch rating agency noted that debt to GDP has fallen from a high of 135.3 percent in fiscal year 2012-2013. I wonder who was in government then. By the time, Madam Speaker, by the time we close this fiscal year 2024-2025, on March 31, 2025, we will be at 68.7 percent.

Madam Speaker a country’s credit rating is important because it reflects the country’s creditworthiness and ability to repay its debt. A country’s credit rating can influence investors’ perceptions of its economic stability and growth prospects. Madam Speaker, the rating agency noted that this government has built a record of fiscal prudence that has gained credibility in recent years and may be further strengthened over the next several years, including through the successful implementation of the new fiscal commission. Madam Speaker, the independent fiscal commission came into existence this year, on January 1, 2025, and it has since assessed our budget and issued its opinion. If you recall, Madam Speaker, that role of assessing our budget was performed by our Auditor General for many years. The independent fiscal commission, in its first report, has said that Jamaica’s fiscal position and policy is sustainable. The legislated debt-to-GDP target of 60 percent or less by fiscal year 2027-2028 is expected.

Overall, Madam Speaker, our fiscal position is sustainable and achievable. The fiscal commissioner did highlight that… [Inaudible]. The heavy reliance on tax revenues in the last two weeks in March, the last month of the fiscal year. The fiscal commission also pointed to the need to have a presentation of the fiscal balance for this specified public sector and that the revenue measures should be tabled simultaneously with all other budgetary documents, despite this never being done before by any finance minister, Madam Speaker. So, Madam Speaker, we are ending fiscal year 2024-2025 strong.

Unemployment is down. Employment is up. At the end of October 2024, STATIN reported that unemployment stood at its lowest on record, which was three and a half percent, with male unemployment at 2.6 percent and the female unemployment at 4.5 percent. Madam Speaker, I want us to pause and think about this. This is a significant achievement that we should not let anyone diminish. ‘No boy, no gal’, no one should diminish this achievement of this government. Madam Speaker, if you take a look at the chart, look back at October 2013. At the time, the overall unemployment for Jamaica was 14.9 percent. Compare that to the three and a half percent at October 2024. Female unemployment, Madam Speaker, at October 2013 was 20 percent, compared with 2.6 percent at October 2024. Male unemployment, 11.2 percent, compared with 14.5 percent. And look at the employed labor force, 1,108,925 then versus 1,468,900.

Madam Speaker, I will admit that STATIN did change its definition of the labor force recently. But even if you adjust the October 2013 figures to take that into consideration, there would still be a vast difference between the figures in October 2013 and the figures of October 2024. More persons working in 2024. Madam Speaker, more persons working in 2024 is a result of the good policies by Prime Minister Andrew Holness-led government. Today, Madam Speaker, in 2025, jobs abound. We can’t find workers.

Madam Speaker, we’re indeed ending fiscal year 2024-25 strong. Debt to GDP is down and we’re on the path to getting to less than 60 percent debt to GDP by fiscal 27-28. And Madam Speaker, if anyone doubts the wisdom of remaining on this path towards 60 percent debt to GDP, then they should get off this path and see how quickly and how negatively the markets would react. For starters, the U.S. 5.6 billion of net international reserves would vanish overnight as the financial sector loses confidence and that would cascade to the rest of the Jamaican economy and to international markets. Madam Speaker, confidence once lost is very difficult to restore.

So, Madam Speaker, I say again we are ending fiscal year 2024-25 strong. The Net International Reserves, NIR, is strong at 5.6 billion dollars at December 31, 2024. And there’s a chart from the Bank of Jamaica’s database that shows how our Net International Reserves have grown since 1992. You know, Madam Speaker, there are some persons who have been trying to rile up Jamaicans to be loud about getting some of the net international reserves to be spent now to take care of short-term wants. Madam Speaker, that is downright irresponsible. The Net International Reserves is our cushion against the vagaries of the outside world. Madam Speaker, the main purpose of a country’s Net International Reserves is to act as a financial safety net, providing a cushion against external shocks like currency crises or sudden disruptions in capital inflows, allowing the country to meet its foreign exchange obligations and maintain stability in its domestic currency by intervening in the foreign exchange market if needed. Madam Speaker, do you remember COVID? How would we have supplies and vaccines if we did not have U.S. dollars to buy them? Madam Speaker, riling up Jamaicans to demand that the net international reserves be spent is like telling Jamaicans to go party with their rent money. Madam Speaker, when the music is done at the party, what you gonna do? Madam Speaker, I say again that’s very irresponsible and dangerous. Madam Speaker, if they mean Jamaica and Jamaicans any good, they will stop encouraging… [Inaudible]

Madam Speaker, we’re ending fiscal year 2024-25 strong. The overall inflation figures remain within the target 4 to 6% range. I know that for many Jamaicans, inflation at the market for yam, bananas, tomatoes, green peppers, and so on, got way above the national average for inflation after the category 5 hurricane Beryl. I know because I go to the market, and so I know the price of food items. After hurricane Beryl, prices really did fly. However, I am encouraged with the current direction….[Inaudible]…

Madam Speaker, I included the chart on the screen in my presentation to show our young people what the experience with inflation in Jamaica was from 1963 right after independence to 1999, a 36-year period. As you will see, Madam Speaker, inflation was well-contained in the 0-10% band from independence to 1972. Madam Speaker, elections matter.

Can you imagine life with inflation at close to 30% in 1973, 50% in 1977, 80% in 1991? We never had a worse period of inflation in our post-independence history. Madam Speaker, why am I going all the way back to 1973? Because, Madam Speaker, if we do not remember our history, we are doomed to repeat it. Everyone should take pics of these charts and send to all their friends, remind them from whence we came and that we do not want to go back there and certainly not with the people who were responsible for the 30% inflation in 1973, the 50% in 1977 and the 80% in 1991.

Madam Speaker, we are ending fiscal year 2024-25 strong. As a country, we did better than what was projected. Crime is down, roads are being fixed, people got their reverse income tax credit, inflation is contained, persons and businesses are getting relief with the Special Arrears Settlement Program, an initiative that relieves the taxpayers of the penalties, interests and surcharges that have accrued on an outstanding principal balance. We expanded the limit of the capitalization of companies on the Junior market, reduced the income tax for companies that generate more than a specified amount of energy from renewable energy, clarified the tax rate for trust and corporate services and increased the allowance offered to the pensioners and persons over the ages of 55 and 65 years old. We also streamlined the Procurement Act to make it more efficient in its execution. Madam Speaker, what a government!

Madam Speaker, we’re entering into this new budget year after being battered by drought, a Category 5 hurricane Beryl like no other, tropical storm Raphael and significantly above average rainfall October, November, December. The PIOJ puts the devastation of hurricane Beryl at 1.9% of GDP for 2023 or 56.7 billion dollars. We all remember pictures of the devastation. Madam Speaker, in the left on the screen, a woman looks at a beach littered with trash in Jamaica in the aftermath of hurricane Beryl. Pictures of persons walking through the debris after their premises was damaged and this was in Old Harbor, Jamaica. Madam Speaker, it cannot be denied that the declines we suffered in GDP during this current fiscal year were as a result of what the Director General of the PIOJ called hydrological events. Damage from hurricane Beryl had the fourth largest negative impact of the 19 natural disaster events that have battered this Jamaican economy since 1999, a 25-year span. Yet, some would want to call down recession on Jamaica. You have to wonder what are their motives, Madam Speaker. Look at the damage from hurricane Beryl all across Jamaica.

Madam Speaker, in the face of what we know to be increased intensity of weather-related events, we would have been in a very bad place when burial struck if we had not implemented our national natural disaster risk financing with the many layers of shock absorbers for the economy. Madam Speaker, had this government not had the foresight to ensure that we had this multi-layered risk absorbing facility in place, we would not have been able to do the emergency repairs to public infrastructure, clean up and relief effort activities, as well as social expenditure to assist the indigent and other vulnerable populations. Our schools will still be in a very bad shape. A large percentage of the students would not have been able to attend school up to now because their school would not have been fixed yet. I should know. I was the Minister of Education at the time.

Madam Speaker, here is what this government has put in place to cushion the budget during disasters and provide for Jamaicans a $130.6 billion national natural disaster risk financing shock absorber. And that policy says in times of disaster, start with what you can reallocate, what you can defer, what you can delay or cancel. If that is not enough, go to the next layer, the contingency fund and the national disaster fund. This is $4.8 billion. Then you go to the next level, the national natural disaster reserve fund that has a billion dollars. Together, these two funds total $5.8 billion, and the important thing, Madam Speaker, is that they are Jamaica’s own resources. And if that is not enough, we have two contingent credit arrangements thanks to our international partners. This month, we added yet another layer, the catastrophe deferred drawdown of $6.5 billion to the shock absorber we already have. Layered on top of that is the Caribbean catastrophe risk insurance facility, $19.2 billion. And then if we get one of those really, really, really bad disasters, we have the catastrophe bond for $25 billion. When you add all of that up, Madam Speaker, that’s a total of $130.6 billion. That is the size of our shock absorber, Madam Speaker.

They, on the other side, in all the years they have been in government spending, spending, spending, did not consider the future of Jamaica to provide for contingencies for disaster. Yes, I will give them credit for continuing the payment for the CCRIF insurance, which was started under us during 2007 to 2012. But there was nothing else, no contingencies other than the begging that I see practicing in the U.S. recently.

Madam Speaker, can you imagine if this government had not put in place this multi-layered national natural disaster financing policy to ensure we recover quickly from Beryl and Raphael in record time? All now we would be in darkness, without water. The roads would be impassable, schools would not have been repaired, no cash resources would be available for farmers, businesses, and families. The commitment of this government, Madam Speaker, is to continue strengthening our multi-layered national natural disaster risk financing and to fill any gaps that we have. Of course, Madam Speaker, how much we can access will depend on the severity of the disaster. And Madam Speaker, I must give former Minister of Finance and the Public Service, Nigel Clarke, his props for this. He not only had the foresight, he did the work. We are continuing that work. And so, Madam Speaker, the question that Jamaican people should be asking themselves right now, who would you rather have? A government with the foresight to put in place $139 billion shock absorber for this economy, or one that ran with it during an election year when there was no room in the budget?

Madam Speaker, it’s not just the weather across the world that has caused dislocation. We’re entering the new fiscal year with the most seismic of changes swirling. Geopolitical changes, heightened tensions regarding tariffs. Many Jamaicans at home right here in Jamaica are beginning to see relatives they have not seen in a very long time. And swirling all around us are developments in artificial intelligence, which continue to astound and concern. The Nobel Prize Committee recently recognized AI’s importance when it awarded the Nobel Prize in Physics to John Hopfield and Geoffrey Hinton for fundamental discoveries and inventions that enable machine learning with artificial neural networks. And half of the Nobel Prize in Chemistry, Madam Speaker, went to Demis Hassabis and John Jumper for developing an AI model to solve a 50-year-old protein problem in protein research by accurately predicting the protein complex structures based on their amino acid sequences. Madam Speaker, I am not a scientist. And so I used AI to help me understand the significance of solving this 50-year-old problem. Scientists say that results that once took years now take seconds.

Madam Speaker, there’s a lot of discussion. And that discussion is growing on whether and how to regulate AI. Agreement on that score remains elusive because, again, experts say too much is changing too fast. So, Madam Speaker, why am I going so far afield talking about AI? Because, Madam Speaker, scientists say these advancements hold transformative potential for fields like medicine, biotechnology, and environmental science that we can now predict protein structure and design our own proteins confers the greatest benefit to humankind. We are living in an awesome time, Madam Speaker. As a result, as a government, we must generate budgets that help to equip our people for an environment that experts say is changing too fast.

Madam Speaker, for the central government, for fiscal year ending 31st of March 2026, the total recurrent expenditures, which includes wages and salaries for the various ministries, departments, and agencies of the central government is a trillion dollars, 34 billion, 707 million, 200,000. This is an increase, Madam Speaker, an increase of 9.6% over the current expenditure of 24-25. Capital spending of 62 point billion dollars for central government is up 1.5% from the revised estimate of 61.7 billion. We had originally anticipated to spend 80 billion when the budget for fiscal year 2024-25 was first tabled in Parliament.

Madam Speaker, debt amortization, which is where a lot of the confusion was among those who took a look at the expenditure when those were published. Debt amortization was 317.3 billion in fiscal year 2024.

Madam Speaker, debt amortization, which is where a lot of the confusion was among those who took an initial look at the expenditure when they were published, was 317.3 billion dollars in fiscal year 2024-25, but it is only going to be 162.7 billion in this upcoming fiscal year. If you simply use the numbers in the fiscal year 2025-26 estimates of expenditure, you would conclude that the recurrent expenditure dropped by almost 10%, but that would not be the correct conclusion. Expenditure excluding the debt amortization was up 9.6% for this upcoming budget year versus that of the budget year we are closing.

Additionally, Madam Speaker, we are projecting to spend 5 billion less on interest expense. This means more is available to spend on those things Jamaicans care about. Roads, water, education, security, health, technology, garbage collection, new buses, and so on. Madam Speaker, capital spending, which is monies to take care of roads, lay water pipes, build schools, police stations, courthouses, is expected to total a 163.8 billion dollars across government. When you add together the capital spending by central government, which is 62.6 billion dollars to the 103 billion dollars capital spending our public bodies will deploy, that number is a staggering 163.8 billion dollars. This is a 36.5% increase over what is being spent in this fiscal year ending March 2025. This will significantly add to GDP growth in the new fiscal year.

Madam Speaker, we have 150 active public bodies. We don’t give enough recognition to them. They perform regulatory, advisory, supervisory, research, administrative, technical, or quasi-judicial functions. Many of them are funded by the consolidated funds, but there are 52 that provide, through their various services, major contributions to the economy. So these public bodies are in the portfolios of various ministers on which they will report during their sectorial. But suffice it to say, Madam Speaker, together, public bodies are expected to end the new fiscal year with 1.6 trillion dollars of gross assets. This is 6.6% greater than the gross assets in the fiscal year that is drawing to a close.

They are projected to employ 14,203 persons, or 5.5% more than they did in the 2024 fiscal year, and they are projected to generate revenues of 644 billion dollars, an 8.7% increase over that of fiscal year 2024-25. For the upcoming fiscal year, we’re asking a little less in terms of transfers from them, but you will see that their capital spending will be 4.2% more than the 97.2 billion they spent in fiscal year 2024-25. So, Madam Speaker, those are the important budget figures for fiscal year 2025-26, for central government and for the public bodies.

Now, Madam Speaker, I am sure what all Jamaicans want to know is how are we going to fund those budgeted expenses, and what is in the budget for the country, and more important, what is in the budget for them personally. You know, Madam Speaker, as a young girl living in Kingston, right after graduating from Fern Court High School, every time it was budget time, I would feel the nuts in my stomach because I knew that a big part of the little pay I was getting at the time would be gone into higher taxes. I recall feeling anxious around budget time because I knew the inevitable, more new taxes. At that time, Madam Speaker, when I graduated from Fern Court High School, it was not our side that was in government.

Madam Speaker, I would like you to take a look at this chart on the screen. Look at the years 1992 to 2004. There was one government in charge. The same government occupied the parliament for all those years. Now, look at the fiscal balance as a percent of GDP. Look at the budget balance as a percent of GDP. Negative, negative, negative, negative, negative, negative, negative, negative, negative, negative. Today, Madam Speaker, I carry that feeling in my gut whenever I remember the struggles in those years in which I had to paddle my own canoe as a young girl in this country while helping to take care of my younger sister.

Madam Speaker, I know that we all know that this is an election year, but I do know as well that Jamaicans have grown to know that as a government we are committed to remain disciplined. We would not throw away the hard-won gains of the people of Jamaica, Madam Speaker, not even to win an election. So how will the budget for fiscal year 2025-26 be funded? So, Madam Speaker, the central government budget will be funded with $949.5 billion of tax revenues, $139.8 billion of non-tax revenues, $812 million of bauxite levy, and $5.96 billion of grant.

In terms of the debt payment, we have $162.7 billion of debt that comes due in fiscal year 2025-26. We forecast loan receipts of $158.4 billion, and we expect to pay the difference from our own resources. This upcoming fiscal year 2025-26, we are projecting a surplus, a small surplus, but it sure beats the negative, negative, negative, negative, negative negative years that have plunged Jamaica into the abyss. Take a look at the debt-to-GD figures practically every year that the government of 1992-2004 ran a budget deficit, the debt-to-GDP went higher. They mortgage the future of Jamaican people at 68.7 percent debt-to-GDP. At the end of this fiscal year, we have just about emerged into the light from the deep sink hole in which the run-with-it-government plunged Jamaica.

Madam Speaker, recently, the Tax Administration Jamaica conducted a survey, and it asked Jamaicans, what do they believe are the implications when TAJ does not collect taxes? The answers may surprise many. Ninety-one percent of the people say health of the economy would be negatively impacted. They say the ability for government to pay for social amenities would be reduced. They say the ability for government to pay for social amenities would be reduced. They say there would be an inability to service the country’s debt. Eighty-seven percent said an inability to invest in infrastructural development. Eighty-nine percent said inability to pay the salaries and wage of public sector workers. Madam Speaker, 72 percent said the implication when TAJ does not collect taxes is an increase in tax rates. An inability to establish an optimal budget for the country. And 78 percent said when TAJ does not collect taxes, it increases the tax burden on those who pay taxes.

Madam Speaker, these responses are encouraging to me to know that when all is said and done, Jamaicans do understand that a government, any government, has to collect taxes to pay for social amenities, service the country’s debt, invest in infrastructural development, pay the salaries and wages of public sector workers, among other things. For example, in the expenditure for this upcoming fiscal year, we have had to make an allocation for the new round of wage negotiations, plus the one-offs and back pay or retro pay due to some groups. Jamaicans get it, Madam Speaker.

In the budget, Madam Speaker, compensation for government employees is in the budget at $495.8 billion, and it includes new rates of pay for medical consultants, dental surgeons, parish court judges and probation aftercare officers, back pay for medical consultants and parish court judges, an allocation to support the employment of agricultural wardens, a billion dollars to support a continuation of the Jamaica National Service Corps, and a compensation contingency provision of $33 billion to meet the cost of public sector wage settlement, including a provision of $3 billion to support the filling of vacant technical positions in regional health authorities. That’s in the budget, Madam Speaker.

On the issue of the current round of wage negotiations, Madam Speaker, the Ministry of Finance and the Public Service has thus far received 11 claims to include Jamaica Civil Service Association, JCSA, Jamaica Confederation of Trade Unions, JCTU, Jamaica Teachers Association, JTA, Police Officers Association, POA, and groups within the health sector. The government has commenced discussions with the unions and associations for the new contract period. The continued engagement of all stakeholders remain key to the maintenance of harmony in the public sector.

So, Madam Speaker, there has been quite a bit of public debate on the issue of whether or not we have a cap on public sector wages in relation to GDP. Madam Speaker, the history is that up to April 2023, Jamaica had a rule to cap public sector wages and salaries at no more than nine percent of gross domestic product each year. The cap was implemented in 2013 while Jamaica was in an IMF program with the then government. You may recall, Madam Speaker, that the then government signed the U.S. $615 million extended fund facility with the IMF in 2012. At the time of implementation of the wage to GDP cap of each year, our national debt stood at 147 percent of GDP and inflation was 9.1 percent. Contrast this, Madam Speaker, to a debt to GDP of 68.7 percent that we expect to see when we close this fiscal year as opposed to that 147 percent debt to GDP when the rule was put in place. Contrast this as well to inflation at 4.7 percent at the end of January 2025. Inflation then in 2012 was almost twice where it is now. Additionally, and very significant, this government formally adopted inflation targeting policy in 2017 which is being implemented by the Bank of Jamaica of inflation being in a range of four to six percent.

I’m giving all of this background, Madam Speaker, to remind us of the reason back then for the cap on public sector wages. Following all of that, in 2022, this administration abolished the wage to GDP cap in order to address retention issues, wage freezes, and historical underpayment in the public sector. Truth be told, Madam Speaker, the history is that the target was met only once and the cap was criticized for stifling public sector reforms and contributing to attrition in critical services like health care and education. But I don’t want Jamaicans to believe that there are no controls on the budget. The major controls we have on the budget is the fiscal balance rule and the debt ratio. I believe every Jamaican should know by now that the debt to GDP ratio is being targeted to be 60 percent or less by fiscal year 2027-28.

The fiscal balance rule is also a strong guardrail for the financial affairs of this country. It is not as well known as the debt to GDP target, but it is codified in our laws as a target in fiscal year 2020-2021 and continuing for four years. And that is what we have. During those years, we were bound to have a fiscal balance surplus of no less than 0.3 percent of GDP. Madam Speaker, I’m happy to say that this was only missed during fiscal 2021, the year of COVID. And I am sure you can understand why. It has been proven that containing our spending by the fiscal balance rule and the debt to GDP and maintaining that discipline, then our fiscal affairs will remain on a sustainable path.

For the public sector, the focus should now be on pay for performance, efficiency in service delivery and productivity gains. Madam Speaker, as we approach the start of the new fiscal year, we intend to make significant progress in the implementation of the pay for performance element of the new compensation system. We have begun the conversations with our union partners because we must continue to transform to provide the framework and tools to improve productivity in the public sector. The pay for performance system is a key component in incentivizing performance in the public sector. Madam Speaker, let me be the first to say we are ending fiscal year 2024-25 with gains in efficiency and productivity in government.

I want to extend my sincere gratitude to my predecessor, Dr. Nigel Clarke, for a very good run of the first leg and handing the baton to me to continue the race. At the same time, I must express my thanks also to our union partners and public sector workers who stayed the course as we navigate some difficult terrain. Madam Speaker, this honorable house will recall that in 2017, this Prime Minister signaled the government’s intention to pursue modernization of the state in a more deliberate and transformative way. And I want to pause to acknowledge the support of our international partners in assisting us in key areas of our development agenda. It is very easy to say, Madam Speaker, that the government is inefficient and ineffective. And I’m the first to admit that whilst we have achieved a lot, much more is left to be done. But if we look dispassionately at the public sector, it must be acknowledged that significant strides have been made. Even as we modernize and transform, we must continue to deliver public services. We cannot close shop and put up a sign to say, under transformation, reopening soon. Exercises like these take time and require consultation with multiple stakeholders as we all work together to build a better public sector for all.

Madam Speaker, some of the strides made include expanding the use of ICT in the public sector to drive efficiency and effectiveness. Building a shared services operation as a means of transforming the way government provides service internally, transformation of human resource management practices, compensation management, and rationalization of public bodies. Under this program, Madam Speaker, GovNet became a reality under the efficiency pillar. There is now a dedicated broadband infrastructure for the public sector. To date, 700 entities in the Kingston metropolitan area are now directly connected to the system. We’re talking about ministries, departments, and agencies, schools, courts, and police stations. At the same time, the data center at EGov Jamaica has been upgraded and its data storage capacity has been increased by 260 percent. We’ve also provided the public sector with additional cloud infrastructure and all the automated management tools and security components that are needed for government to operate a modern data center on behalf of the rest of the public service. Additionally, by leveraging GOJ-owned communication assets, digital systems can now interface more easily, allowing for greater interoperability between digital platforms in the public sector. This means that the framework is in place to allow e-government services, citizen-facing applications, and back-office operations to integrate more efficiently, reducing duplication, improving service delivery, and ensuring that government processes are faster, more secure, and more responsive to the needs of the public. Yes, Madam Speaker, more work is to be done, but the foundation is set for citizens to feel like they’re interacting with one interconnected government instead of siloed MBAs.

The Transformation Implementation Unit, lovingly called TIU, has also partnered with four ministries to implement systems to improve the way they deliver key services. A customer relationship management system was implemented at the Passport, Immigration, and Citizenship Agency of the Ministry of National Security. This has been having a positive impact on customer service in terms of what it does. IRIFINS, a web-based fisheries licensing and registration system for fisheries and fisher farms, was implemented at the National Fisheries Authority, and I’m sure Minister Green will speak more on this in his sectorial. These are examples of the work of the TIU. IRIFIN, at the Ministry of Labour and Social Security, the Transformation Implementation Unit has supported the ministry to develop an effective and user-friendly web-based work permit system to improve the processing of work permit and CARICOM skills certificate, and I am sure Minister Charles will speak more fulsomely to this. Madam Speaker, the Transformation Implementation Unit is particularly proud of the partnership with the Child Protection and Family Services Agency to modernize its ICT infrastructure. The CPFSA can now boast a unified network built on modern, secure, and robust technology.

Still on the ICT front, MyHR, an integrated HR and payroll management system, is the first enterprise system successfully deployed in the public sector. It is now being used by approximately 70 ministries, departments, and agencies, which is putting the government on a path to better managing its most critical resource, which is people. Madam Speaker, employees can now access their records anytime to ascertain information such as leave balances, status of requests for approval, and their payslip. They no longer need to go to HR to access this information.

Madam Speaker, we have been able to address some of the residual issues of the new compensation system because we have more automation in place, and I’m pleased to report to this Honorable House that we have agreed two key policies with the Union, one for work done outside of normal working hours and the other for the provision of uniform allowances. In the upcoming fiscal year, we will implement a new phase of the public sector transformation program to build on the gains made in phase one. Phase two will focus more on digital transformation, continuing to ensure the requirements for increased productivity in the public sector are in place. We eagerly look forward to the commencement of this program. Madam Speaker, transformation “a-fi we ting!”

Madam Speaker, support to self-financing public bodies of $27.8 billion is in the budget, of which $11 billion are allocated to JUTC, Mobay Metro, $10 billion to the National Water Commission, $900 million to the Transport Authority, and $210 million to the Jamaica Commodity Regulatory Authority, JACRA. That’s in the budget, Madam Speaker.

Madam Speaker, let me pause to say that the $10 billion allocation to the National Water Commission was the easiest yes for me. I remember as a child in Tydixon that we either had to have a tank in our yard or a drum to catch rainwater in order to have water for cooking, bathing, washing our clothes, and all the other things we do with water. Madam Speaker, even though we had a tank in our yard, the tank leaked, and so unless rain fell heavily, the tank was generally dry. Madam Speaker, I remember many school mornings in order to tidy up to go to primary school that as children, me, my younger brother and sister, and other children in Tydixon, had to go to the one government public tank to catch water in a pan. Put the pan of water, yes. So, Madam Speaker, in order to tidy up to go to primary school, that as children, we had to go to the one and only government public tank to catch water in a pan. Put the pan of water on our heads with a catta under it to keep it steady in order for us to have water to use before we go to school. And, Madam Speaker, we could not be late for school either. I know that this may still be happening in some rural communities, and so when I say it was the easiest yes in terms of the $10 billion to NWC, it is because I lived the experience of an ordinary Jamaican. An ordinary Jamaican in rural Jamaica, in Tydixon, and I know the hidden hopes and dreams of ordinary Jamaicans. They want running water in their bathrooms, in their kitchens, and available for them when they need it. Madam Speaker, this government will continue to work to make that happen for every Jamaican household.

So, Madam Speaker, recently I gave my strongest endorsement to the PPP, public-private partnership, that Prime Minister and Minister Samuda signed with the various partners to build the Rio Cobre water treatment plant at a cost of US $77 million or 12 billion Jamaican to bring an additional 15 million gallons of water to benefit Jamaicans. The deal was criticized for having an interest rate that to those who do not have the responsibility of contemplating and planning the future of Jamaica, that interest rate seems high. When I heard those comments, I ‘whatsApped’ Minister Samuda and I said, I will defend this project anytime, anytime, because the issue in three or four years time when water is needed as the population in Kingston and St. Andrew and in our 15th parish, Portmore grows, at that time, in three or four years time, the issue will be water versus no water, not high versus low interest rate.

Madam Speaker, I know the hidden hopes and dreams of ordinary Jamaicans for a better life. Our commitment is to continue creating the pathway for that better life. So, Madam Speaker, approximately 2.1 billion, of which 1.1 billion is allocated to the Ministry of Labour and Social Security to provide individual grants of $20,000. That is in the budget. Prime Minister will speak to this in his budget presentation. He announced this at the special conference, remember, back in November of 2024 at the National Arena. That is in the budget, Madam Speaker.

There’s a billion dollars to the Ministry of Science, Energy Technology and Transportation to support a program dealing with the alleviation of energy poverty. That is in the budget and I will speak more to that shortly. Restoration and maintenance of major corridors and gullies program at $4.6 billion is in the budget. Our Prime Minister will speak to the specifics of this and there is $1.96 billion to support the holding of general elections within the next 20 years. That is in the budget, Madam Speaker. The payment of principal amounts of $1.5 billion on NHT arrears of approximately $2.5 billion, which includes penalty of $1.3 billion. These arrears were incurred by the Ministry responsible for education. That is in the budget. Subvention of $1.7 billion to the University Hospital of West Indies to address new salary rates and arrears for medical consultants, as well as filling of technical staff position. That is in the budget. UTECH, obviously, Madam Speaker, I can’t list every single thing that is in the budget, but to say to UTECH, you are in the budget.

Madam Speaker, I know that DBJ is a public body in the Ministry of Economic Growth and Job Creation that channels financing to MSMEs, as well as to large projects in order to drive economic growth and development. It will continue to pursue innovative means of mobilizing funding and leveraging private sector investment and expertise through its venture capital program, as well as public-private partnerships and privatization transactions. Madam Speaker, $2 billion is in the budget for DBJ to allow them to continue to facilitate sustainable growth of start-ups and MSMEs, and to continue to support women-led initiatives, entrepreneurship training, including digital skills boot camps. $2 billion is in the budget for DBJ, Madam Speaker, for MSMEs. We have to commend our MSMEs. The latest figure from the Small Business Association of Jamaica is that there were an estimated 422,000 registered small businesses in Jamaica, generating, and get this figure, 80 percent of the jobs in the Jamaican economy. This means 1,136,240 persons in our workforce are employed by a micro, small, or medium enterprise. In the picture on the screen, Mr. Headley and his egg farm is one such person who DBJ assisted to expand his farm.

Madam Speaker, the top concerns for small businesses that I hear repeated over and over again, and Minister Hill will tell you as well, is access to financing, and not just plain vanilla access. They want equitable access to financing. They are also feeling the burden of high interest rates, and have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution, and so my commitment to them is to get together with the Minister, Minister Hill, to let us sit down with the banks, and see how we can agree to reduce the burden of opening a bank account for MSMEs.

Madam Speaker, recently, as a government, we listened to the new car dealership industry. They said that a 100% bond on the duties they pay ties up too much of their capital. Madam Speaker, Jamaica imported some 50,786 motor vehicles worth $81 billion in 2022, and if you look at the duties, the duties are between 67 to about 88% of the value, and if you assume the lowest duty, you can see that the capital tied up against the duties is significant. We listened to the industry, and now, instead of a 100% bond, against the duty, we have reduced that to 20%. This frees up capital to invest in other businesses, or to expand existing businesses, hire more people, and contribute to economic growth. That was not a call on the budget. That was not a tax incentive. That represents this government listening and understanding the hurdles in the way of businesses, and taking steps to reduce or eliminate those hurdles.

Madam Speaker, on capital spending, the $62.6 billion proposed for capital expenditure in 2025-2026 will be spent by central government, and it includes a contingency provision for new public projects of $2.1 billion. Major infrastructure projects under implementation by the Ministry of Economic Growth and Job Creation accounts for $30.6 billion, or 49% of the capital spending across central government. And I am sure the Prime Minister can’t wait to speak to his plans for roads, and more roads, and parks, and parks and more parks. That is in the budget.

Other ministries are in receipt of significant capital expenditure allocation as well. Ministry of Health and Wellness, $10.2 billion is in the budget, including $5 billion for Cornwall Regional Hospital, $4.1 billion for the IDB-supported prevention and care management of non-communicable disease. That is in the budget. There’s $4.6 billion in the budget for the Office of the Prime Minister, including $3 billion for NIDs. That is in the budget. MSET, $4.5 billion is in the budget for MSET, including $3.2 billion for the procurement of new buses for JUTC. That is in the budget, and I’m sure Minister Vaz will speak to that. There is much, much more in the budget for Ministry of Education, $4.2 billion, including $1.7 billion to the primary and secondary schools infrastructure project. That is in the budget. At the Ministry of Agriculture, $3.7 billion, and I am sure Minister Green can’t wait to tell you about what he’s doing for Essex Valley and Southern Plains. $3.7 billion is in the budget for agriculture under the capital program. And MNS, Ministry of National Security, $1.7 billion to continue construction of police divisional headquarters in Westmoreland and St. Catherine North. That is in the budget.

I am sure, Madam Speaker, that you will agree with me, after hearing those robust budget numbers for the various ministries, that for an economy that has been so battered by a drought, by a Category 5 hurricane Beryl, by Tropical Storm Raphael, and rains, especially during the Month of November and December, that were well above the 30-year average, that the word for this Jamaican economy and for the people of Jamaica, that word is resilient. Madam Speaker, we must continue to put in place everything that will bolster our resilience as a country and as a household. During the new fiscal year, we will bring to Parliament legislation for micro-insurance. Madam Speaker, not every Jamaican can afford the premiums for traditional insurance sold here in Jamaica, and so we have to meet the people where they are. Madam Speaker, micro-insurance legislation has been talked about, but I give my commitment that micro-insurance legislation will be passed in this new fiscal year. Madam Speaker, I believe that this will significantly improve financial inclusion once it comes into effect, and that our commitment, when it comes into effect, is to assess how we can help every PATH family access micro-insurance to build financial resilience so that these vulnerable families can manage the financial impact of unexpected events such as illness, a death, loss of income, or natural disaster.

Madam Speaker, one player in the insurance industry who is looking forward to seeing the legislation come into being estimates that it is possible to offer a micro-insurance policy with a premium of $250 per month, not $2,500, but $250 per month for half a million dollars benefit. That is worth it, Madam Speaker, to assist the most vulnerable to build resilience. Of note, the FSC has indicated that it would welcome the completion of the micro-insurance legislation as it has been a work in progress. FSC said that it would increase insurance penetration in Jamaica through the expansion of access to insurance. This is how we help families build resilience, by creating affordable insurance products to assist them in times of need.

Madam Speaker, there are many other pieces of legislation that we must pass in this Parliament in this upcoming fiscal year. The income tax, large-scale projects and pioneer industry will be repealed and replaced as a means of updating the legislation to ensure that it is fit for purpose. The work is significantly advanced for this. If you look at the history of this, it was enacted in December of 2023, but it has not been able to take effect just yet because there had to be some significant rework. By Cabinet decision number 38/19, dated December 2, 2019, the Cabinet granted approval for the issuance of drafting instructions to the Chief Parliamentary Counsel to amend this Act. We have been working on it, Madam Speaker. Given the vast economic benefits that the Act is intended to achieve for Jamaica, it is imperative that the Act finally be operational so that the country can reap the rewards from the framework that it established to support large investments and economic development. There is one investment that is waiting for this Act to be passed, and that is the Harmony Cove Limited Development Project. This investment in Jamaica will be US$1 billion. We will bring this legislation to Parliament before the end of this fiscal year. This investment is too huge to wait another day.

Madam Speaker, Phase 2 of the private pension reform process, referred to as the adequacy phase, seeks to address issues such as the locking in of members’ compulsory contributions, vesting of members in relation to benefits derived from the employer’s contributions, portability of pension benefits and allowance for dependent disability pension. This phase 2, Madam Speaker, has been talked about and dreamt about for a very, very long time. I can recall during my private sector days, more than 15 years ago, that I was part of several pension working groups. Pension phase 2 is important, and so I will prioritise this legislation in this upcoming fiscal year.

Madam Speaker, in order to continue the innovation in our financial sector, we will quickly pass the Virtual Asset Service Provider Bill legislation, a critical piece of legislation which is not just a regulatory necessity, but an economic imperative for the future of Jamaica. The bill represents a pivotal step in modernising our financial sector, ensuring our compliance with international financial regulations and positioning Jamaica as a leader in fintech innovation within the Caribbean. Madam Speaker, Jamaica must pass this Virtual Asset Service Provider Bill to ensure compliance with the Financial Action Task Force, FATF Recommendations 15 and 16. Our financial system must meet global standards on anti-money laundering, AML, counter-terrorism financing, CFT, and the prevention of proliferation financing, PF. This legislation establishes a robust legal and regulatory framework for virtual asset service providers, ensuring that those businesses operate within strict licensing supervision and enforcement guidelines.

Madam Speaker, beginning with this budget speech, and I will announce shortly, will be the start of our initiatives to encourage local taxpayers to bring home to Jamaica their business income and business activities, including associated businesses and employment, as well as investment holdings that have been established in or transferred to other tax jurisdictions. A Cabinet submission detailing this will be in front of Cabinet shortly for its consideration.

Madam Speaker, I have to be true to the financial sector. In all our contemplation, Madam Speaker, we have to engage with the financial sector around the vexed issue of the asset tax, which they were told by the other side would be temporary. Some ideas have come to me from the financial sector on how we could begin to scale this back. I gave a commitment to review them and work with the sector on this issue. And there are many other ideas that came to me from the financial sector with regards to new products, efficiencies, and so on, and I will begin that engagement with the financial sector.

Madam Speaker, the Student Loan Bureau has gone through many changes, making itself more efficient and more service-oriented. It is working to move itself to another level, a higher level, with a new and improved customer platform, which should have been launched in 2022, but is now targeted for the first quarter of the new fiscal year 2025-26. This platform will allow students to view their loans, print statements, and pay their loans online, among other functions. The SBL reported to me that the biggest challenge that students have been complaining about is accessing the information about their loans. However, as the student loan says that once their platform is launched, students will see significant improvement in efficiencies. Madam Speaker, during the 2023-2024 fiscal year, the decision was taken by this government to no longer require PATH beneficiaries to have a guarantor, and PATH beneficiaries would have 100% waiver for application fees. Since then, there has been an 85% increase in the number of PATH beneficiaries in 2024-2025 versus the figure in 2023. Madam Speaker, I want to put on record this government’s commitment to improving the offerings from the Student Loan Bureau by the beginning of the school year in September 2026. A CAPRI study has given us excellent suggestions on how to modernize the student loan offerings. We are committed to doing the overhaul of the student loan system and will engage CAPRI as we start that process this upcoming fiscal year.

To let Jamaicans know our headspace and where we’re heading, we are committed to an increase in the loan amounts that students will be able to access. And for the disbursement to include not just tuition, but also housing, books and supplies, the cost of a laptop, and a stipend for meals. We are also committed to a meaningful reduction in interest rates on the various loans, and we are committed to longer loan payment periods. As you can see, Madam Speaker, these would be significant changes to how the Student Loan Bureau operates currently. And so we have to work with the Student Loan Bureau to be able to launch these initiatives for the new school year starting September 2026. It’s going to take time to implement these changes. The student loan is building bridges and transforming dreams. But while we wait for those changes, this government, through the Student Loan Bureau, will be offering to new students a longer repayment period of 10 years instead of the current seven and five years. And the rates will remain the same, meaning the rates will not increase because the payment period has increased. We are starting with that one step, Madam Speaker, and we’ll work rapidly to ensure the systems are in place to roll out the new loan offerings to make the lives of our tertiary students better and allow them to focus on attaining their educational goals to benefit themselves, their families, and Jamaica as a whole. The student loan is building bridges and transforming dreams.

Madam Speaker, you may recall that earlier I highlighted the $2 billion that is in the upcoming budget for the DBJ for on-lending for many small businesses. In addition to that, Madam Speaker, we’re also raising the GCT exemption for small businesses from $10 million to $15 million.

So in addition to all the items I listed that are in the budget, which was good news number one, and the work that the Student Loan Bureau will be doing to improve the offerings, which was good news number two, raising the exemption from $10 million to $15 million for MSMEs is good news number three.

Madam Speaker, as we accelerate the pace of economic growth in Jamaica, accelerated capital allowance is one strategy that this government will use to move growth to a higher level. In general, as businesses know, because they currently get capital allowance and specific capital expenditure, like industrial buildings, plant and machinery, and information technology equipment, it is a tax relief to the companies because they would be allowed to deduct some portion of the cost from their taxable profit over time. This deduction, the capital allowance deduction, reduces the company’s overall tax liability and provides a fiscal incentive for business growth and business investment.

Madam Speaker, as a government, we would like to see greater investments among our companies, and so we are making a special provision for accelerated capital allowance on industrial and non-industrial commercial buildings, plant and machinery, which includes automatic data processing equipment, and this will be over a two-year period. We will publish that schedule. It is kind of too detailed to read out right now, but suffice it to say it gives significant accelerated capital allowance over a two-year period. And so we are encouraging companies to take the opportunity to upgrade their machinery, their ITC infrastructure, their industrial buildings, to help expand their output so that we can move the GDP growth rate to higher levels. So as an example, Madam Speaker, for plant and machinery, currently the initial capital allowance is 25 percent over… the initial year is 25 percent. The period for the capital allowance for machinery is eight years under the current regime, so the annual capital allowance would be 12.5 percent. We are moving that to 40 percent in year one. So the details, Madam Speaker, will be published for the companies, and that is good news number four.

Madam Speaker, this government believes in the stock market to create prosperity for the people of Jamaica. If you recall, Madam Speaker, the Honorable Edward Seaga inaugurated the Jamaica Stock Exchange in 1969 as the Minister of Finance and Planning. The Jamaica Stock Exchange is one of the many financial institutions that the former Prime Minister and Minister of Finance created to help Jamaica’s capital market. Madam Speaker, history recalls that he took part in the first transactions by purchasing shares through two brokers. History also recalls that he wrote up the transaction on the board. If you look on the screen, you’ll see the picture where the exchange dealings were recorded. In those days, we did not have the kind of technology we have today. Mr. Seaga’s goal for the stock exchange was to help companies in Jamaica by opening up the capital market to allow Jamaican investors to participate in these companies, to enable private companies to go public. On February 1, 2008, this government clearly continued its strong support for the stock market as a whole, but more important for the establishment of a junior stock exchange.

I go further, Madam Speaker. It was this government, under the leadership of the Honorable Bruce Golden, that facilitated the launch of the junior market on April 1, 2009. Sadly, Madam Speaker, despite the clear success and the positive impact of the junior market, we witnessed a shockwave when the then Finance Minister announced in this Parliament on October 12, 2013, that his government would phase out the Jamaica Stock Exchange junior market benefit in eight years. In opposition in 2013, the shadow spokesman on finance, MP Audley Shaw, clearly, he clearly stated the intention on October 2, 2013, not to shut down the JSE junior market. In April 2016, as soon as the then Minister of Finance and the Public Service, Minister Audley Shaw, at the time, as soon as he took his seat at the Ministry of Finance and the Public Service, he restored the incentive.

Today, Madam Speaker, the junior market companies have paid over $1 billion of statutory deductions, $1.6 billion of GCT and $1.6 billion of PAYE. And Madam Speaker, as soon as the chart comes up on the screen, you would see that those junior market companies have raised in the equity market $20.2 billion. Madam Speaker, I cringe to think that many of those companies would be non-existent if we on this side did not fight for the junior market to remain in place. On January 14, 2025, I brought the legislation to Parliament to expand the junior market benefits that former Minister Clarke had announced during his budget speech in March 2024. The amendment to the Income Tax Act increased the cap on voting share equity from $500 million to $750 million. Today, Madam Speaker, March 11, 2025, this government remains faithful to the stock market development and is pleased to announce its acceptance of the Jamaica Stock Exchange’s proposal to establish a JSE micro market.

I will move with haste to name the technical working committee that will include the company’s office of Jamaica, the legal fraternity, the security dealers association, a member of the PSOJ and, of course, representatives from the JSE and the Ministry of Finance and the Public Service. We fully expect that a fully functioning micro market will put structure to more businesses in Jamaica for sustainability and growth and access to equity capital. We will begin these meetings of the technical working committee as soon as we start the new fiscal year.

Madam Speaker, Dr. Marlene Street Forrest, Managing Director of the Stock Exchange, she’s in the gallery and she has indicated that the JSE has identified over 250 micro and small businesses in Jamaica that are in need of equity funding and are reasonably organized but unable to go public because they’re not yet at the level to meet the requirements of the main or the junior market. And many do not require the threshold of $50 million in participating equity capital, meaning the JSE micro market would be established, Madam Speaker, to meet the needs of MSMEs in the $10 million to less than $50 million in participating equity capital. Madam Speaker, it will be a joy to see the first of these 250 micro and small businesses listed on the Jamaica Stock Exchange micro market not too long from now.

And Madam Speaker, just in case anyone tries to say that they were the first with this idea of the micro market, let me remind them that I spoke at the 2025 JSE conference in Jamaica ahead of the opposition and publicly stated this government’s intention to work with the JSE to establish the micro market. I’m moving now to formalize that process.

Madam Speaker, this government has utilized the stock market to monetize government assets. We have IPO’d Wicton Wind Farm, now Wicton Energy, when I was Minister of Science, Energy and Technology. Now we are in the local stock market again with another offering, which is the government’s 20% share of Trans-Jamaica Highway. The offer opened on March 4th and will close on March 18th. Madam Speaker, I don’t have a license to sell securities and so this is not a sales pitch. This is to demonstrate to Jamaicans that we walk the walk and talk the talk when we say we believe in the stock market in Jamaica. Trans-Jamaica Highway is a concessionaire of Highway 2000 East-West, Jamaica’s first toll road. Its core business activity is the development, operation and maintenance of the toll network in Jamaica. Trans-Jamaica serves an expansive customer base with an average of 70,000 vehicles daily and peaks of approximately 100,000 during the Christmas period. Madam Speaker, Madam Speaker, the government is seeking to raise up to $6.3 billion to the offer of $1,750,700,000 ordinary shares at Jamaica $3.60 and NROCC has reserved the right to upsize the offer by an additional $750,000,000 ordinary shares in the event of over-subscription. All we know is you have to get there before Tuesday, March 18, 2025 in order to get some of these shares. Madam Speaker, this government will continue to incubate and bring to the market sound investments for the people of Jamaica to create their prosperity. And that Madam Speaker, is good news number? Good news number 5. 

And Madam Speaker, the financial sector has given me many more ideas, but those ideas will require a sit-down with them to understand everything that needs to be understood about those ideas.

On the issue of dividends, in Jamaica we’ve had a difference in the tax rate on dividends for resident companies and individuals, which is 15%, and for non-resident companies and non-resident individuals, it is 33 and a third, and 25% respectively. We are pleased, Madam Speaker, to announce that there will be one rate for resident and non-resident companies and individuals of 15%. I want to say to Jamaicans, when you hear non-resident companies and non-resident individuals, don’t immediately think foreign companies or foreign individuals. They may also be companies registered abroad that are owned by Jamaicans. There are also Jamaican individuals who live abroad in countries that have lower dividend rates that receive dividends from Jamaican companies. This benefit is one way to say to those Jamaicans who have companies abroad in jurisdictions with lower dividend tax rates than what currently prevails, we are saying to them, we are lowering the rate for you. Bring your capital back to Jamaica. And that is good news number six. Good news number six.

So Madam Speaker, again, to remind persons of the good news so far, good news number one is what is in the budget for all our ministries. Good news number two is the immediate benefit to our tertiary students in terms of a longer payment period. Good news number three, the $2 billion to DBJ for lending to MSMEs. Good news number four, increasing the GCT threshold for MSMEs from $10 to $15 million. Good news number five, accelerating capital allowance for any sized business. Good news number six is the launch of the JSE’s micro-market. Good news number seven, a dividend pay and investment opportunity, Trans-Jamaica Highway. Good news number eight, reduced tax rates on dividends received by non-resident companies from 33.3% to the same as the local rate, which is 15%. Good news number nine, reduced tax rates on dividends received by non-resident individuals from 25% to the same as the local rate, which is 15%.

And good news number ten, Madam Speaker, there is more good news. Madam Speaker, everyone knows Minister Vaz is in charge of the electricity players in the industry and he answers to Jamaicans for anything that goes wrong in the sector. He not only answers to Jamaicans, he advocates for Jamaicans. Remember the aftermath of Beryl? We were tired of hearing and seeing Minister Vaz calling on JPS to restore electricity. This should tell you, Madam Speaker, that Minister Vaz and this entire Prime Minister Holness-led administration wants an efficient electricity industry, one that is able to deliver the lowest electricity costs possible to the Jamaican people and the business. Madam Speaker, together with the Ministry of Science, Energy, Technology and Transportation, and following on the announcement the Prime Minister made at the National Arena, and we all remember what event that was, that this government will restructure GCT on electricity to make electricity more affordable and give those who want legal access to electricity the opportunity to do so. Today, Madam Speaker, we are pleased to announce that the commitment to reduce the GCT rate on electricity to 7% and eliminate the 150 kWh threshold for postpaid residential consumers is on track for implementation by the JPS, starting on May 1, 2025. Additionally, Madam Speaker, for those postpaid residential customers who consume 250 kWh or less, they will see a rebate of 7% and a 3% subsidy for a total of 10%.

This is a caring government, Madam Speaker, and a government of solutions. And I’m not done yet. On January 28, 2025, in this very Parliament, Minister Vaz revealed to the country that in 2023, the electricity stolen amounts to a staggering $40.385 billion Jamaican dollars. That works out to be $13,500 for every man, woman and child in Jamaica. Interesting to note, Madam Speaker, that on the very next day, the Member of Parliament from East Kingston and Port Royal repeated the same figures. So there is consensus that the bill for electricity taken from the grid without paying for it is staggering. I will go further. I believe that on both sides of the aisle, we both want a solution because all of us who pay for electricity have this added burden on our monthly bills. We have all agreed over the years that this situation of electricity theft cannot be allowed to continue. The people of Jamaica need a solution. And more important, those who cannot afford postpaid electricity also need a solution.

So, Madam Speaker, together with the Minister of Energy, MP from West Portland, and following the commitment of the most honourable Prime Minister at a certain conference on November 24, 2024, we are pleased to announce the most ambitious program to allow affordable access to prepaid electricity. We announce the good news number 12. This government has allocated $1 billion to assist the first 20,000 first-time JPS prepaid customers. $1 billion, Madam Speaker, to assist the first 20,000 first-time JPS prepaid customers who sign up for prepaid electricity. The $1 billion will go towards paying for house wiring and inspection in order to get those with a legal connection to get legally and safely connected to the JPS grid. We know that the cost of house wiring and inspection can be prohibitive for many. And so, as a caring government, we are absorbing that cost in order to begin to cauterize this massive electricity theft problem. Prepaid electricity will put legal electricity within the reach of many. Because prepaid electricity allows you to buy the amount of electricity that you can afford. When you can afford it, you have complete control. You will be able to buy the card or the vouchers from hundreds of outlets across Jamaica. Just like how you buy a phone card now, you may also be able to top up online as well. The technology will make it easy to incentivize the uptake of prepaid electricity service.

We have another good news. The first 20,000 new prepaid customers will get $4,000 credit. So, they will get $4,000 credit for electricity per month for six months. To incentivize the uptake of prepaid electricity service, the first 20,000 new prepaid customers will get $4,000 credit for electricity per month for six months. And this will be on the… This will be on the… Madam Speaker. Madam Speaker. $2,000 dollars of that $4,000 credit will come from the JPS. And $2,000 will come from government. The JPS and JSIF will identify the vulnerable communities and provide the sign-up procedures. To give a sense of the value of the $4,000 credit, it is worth 50% of the average monthly bill of a typical prepaid customer currently on the JPS system. The data from JPS is showing that the average monthly bill for prepaid customers is $8,000 and that there are currently 17,000 customers who are using the prepaid electricity meter.

And so I say to Jamaicans, this is an offer you cannot refuse. No cost to you for the house wiring. And that’s good news number 12. No cost to you for the house wiring. Good news number 12. No cost to you for the inspection. Good news number 13. $4,000 credit towards your bill each month for six months. Good news number 14. No police running in on you to pull down the throw-up. Good news number 15. Buy electricity when you need it and in the amount you can afford. $1,000, $500, $100, depending on how your money runs. Yes, good news number 16. What a deal. What a government.

Madam Speaker, let me hasten to add that prepaid electricity is not just for vulnerable communities or persons not legally connected now. Any individual customer can buy the prepaid service and the GCT on prepaid is also 7%. Good news number 17. We are a caring government. We are a government of solutions. We are a government of action.

Madam Speaker, recently a concerned taxi operator… Madam Speaker, recently a concerned taxi operator, Mr. Dallas, and I believe he’s in the gallery, told the Prime Minister that it was a hassle to get in and out of the tax office quickly. I encourage Mr. Dallas to try our online system to pay for motor vehicle fitness and then go to the motor vehicle depot. He could pay for motor vehicle registration and then go to a special window. He can pay for property taxes online as well. And I was pleased to note as well, Madam Speaker, that the Commissioner of Taxes reported that 80% of revenues are collected online. You can pay your traffic ticket online as well. But Madam Speaker, while we strongly encourage the use of our online access, we recognize that it takes time to transition some people to the online world. And so I ask the Commissioner of Taxes to have a tax office opened in every parish on a Saturday to ease the congestion during the week and make it easier. We will announce those dates as those offices are opened on a Saturday in every parish across Jamaica and in time, the parish of Portmore will…[inaudible]

We should make it as easy as possible for Jamaicans to pay their taxes. It doesn’t make sense to me that Jamaicans would wake up early on a weekday morning, wait for a bus or taxi, journey many miles from their homes to get to a tax office, and they get there and have to wait in line. We should be rolling out the red carpet for taxpayers who told us in a survey that I showed you earlier that they understand the implication if TAJ does not collect taxes. Madam Speaker, we are a government that listens. We are a government that cares. And having a tax office open in every parish on a Saturday is good news. And there’s been so many good news I’ve lost track, but it looks like this is good news number 18. 18 by my count.

Madam Speaker, another area that is a real pain point for many Jamaicans are the ATMs and their lack of availability at the very time you need them. I know many of us already pay for many transactions with our debit and credit cards and that there continues to be an effort by the Bank of Jamaica to get adoption of JAM-DEX or digital currency. In the meantime, while all the efforts are ongoing that would allow phone-to-phone transfer of digital cash, this government will be partnering with the providers of ATMs to install additional ATMs in areas that are secure and convenient to you, especially in our rural areas. Madam Speaker, this government is listening. We hear you and we come with solutions. Bringing an ATM near you is good news number 19.

Madam Speaker, the CHASE Fund, since its inception in 2003, has awarded 4,909 scholarships, valued at $829 million to more than 2,000 early childhood education practitioners and leaders pursuing undergrad and graduate degree programs in early childhood education, special education, literacy and numeracy, curriculum development, educational leadership and educational administration at tertiary institutions. We have listened to our practitioners who have shared the many challenges they face in securing guarantors that affect their take-up of these scholarships and grants. This should not be the case for individuals who serve our country’s youngest, who carry the responsibility of their holistic development. So moving forward, together with the Prime Minister, we have decided to move the need for guarantors for recipients of government scholarships and grants up to $2 million…[inaudible word]. And that’s good news number 20.

And finally, Madam Speaker, we come to the good news number 21. The PAYE threshold. We’re going there, Madam Speaker. We’re going there. Madam Speaker, on seeking to be government in 2016, we told Jamaicans that we would increase the PAYE threshold from where it was to $1.5 million. I do not believe that there was anyone who believed that that could be done other than us. Other than us. Many persons thought it was a campaign trick to win. But we know we are a can-do government. A government of ideas. And a government of solutions. The Honourable Audrey Shaw, Minister of Finance and the Public Service, came to Parliament in 2016 to make the announcement to increase the threshold to $1.5 million over two years in the famous phase-it-in. Madam Speaker, on May 16, 2016, a company that often does analysis of government revenues wrote that the increase in the tax-free threshold of $1.5 million per annum will have particularly positive implications for PAYE workers on low incomes. The proposed policy, speaking of the increase in the threshold, has broader implications, however, said the company that was doing the analysis, as the threshold increases will also significantly reduce the number of individuals who will contribute to the income tax. Perhaps, the analysis said, less than 110 persons in total. 110,000 in total. At that time, in 2016, the writer of the report said that 90% of Jamaica’s employed labour force will not contribute even a dollar to income tax to the consolidated fund. In contrast, the writer said the remaining 10% will be required to carry the entire income tax burden. With yet a further burden being placed on perhaps as few as 12,000 persons due to increase in their rate to 30% on incomes above $6 million.

Madam Speaker, in 2023, when I looked at the PAYE data, we had 652,220 persons earning up to $6 million and paying PAYE. Madam Speaker, it’s a funny thing. When you reduce taxes, you get more people employed. The results are more revenues to government to build roads, provide water, infrastructure, invest in the security force, in education, in health, broadband infrastructure, and the training of our people. That equation has eluded some who want to run this country. They are talking about raising taxes. Recently, a headline. I saw a headline. I saw a headline. JLP’s Creary rejects Crawford’s call for GCT increase as unwise and unconscionable. Senator Fitz-Hendley calls Crawford’s tax to boost education a non-starter. Another one, Madam Speaker, seeking power. Another one seeking power wants to increase tax on imported food items. No matter how much they run and try to distance themselves from raising taxes by making it seem as if they didn’t say so or pretending it was a little joke. Reducing taxes, Madam Speaker, reducing taxes is not in their history. It is not in their DNA. Deficit spending and run-with-it is in their history.

And so, Madam Speaker, the good news. The good news. This government will increase the threshold to $2 million. However, however, however, colleagues, remember, we are a responsible government. And so we’ll increase the threshold in three tranches, to 1.8, then 1.9, then 2 million over a three-year period, starting April 1, 2025. Doing it this way means our hardworking taxpayers don’t have to guess and spell next year or the next year or the next year if the threshold is going to increase. We, yes, we are a caring government. We are a responsible government.

Madam Speaker, Madam Speaker, Madam Speaker, we could have run a deficit. For the first time in 10 years, based on our fiscal rules, we are allowed to run a deficit equivalent to no more than 0.3% of GDP. And that would still keep us on the path to 60% debt to GDP by fiscal 27-28. Madam Speaker, Prime Minister and I discussed this. And he said deficit spending would be a very bad signal to send to the world in an election year. So, Madam Speaker, there is no greater testimony to the high regards that this government has for the fiscal affairs of this country. And by extension, the people of Jamaica than for Jamaicans to know that this government has stared a budget deficit in the face that we legitimately could run in an election year and said no, thank you.

We want to preserve the hard-won gains of the people of Jamaica and their children and grandchildren. So they will not have to suck salt through wooden spoons again. We on this side, Madam Speaker, are not like them. The run-with-it party. The run-with-it party. The party of more taxes. Madam Speaker, as I close my presentation for fiscal year 2025-26, we come to the people of Jamaica with a balanced budget. And no new taxes. Thank you Members.