Budget Debate

The budget debate has just ended and the arguments have just begun about who won the debate, whether the budget was poorly constructed and were the tax measures announced the best way to raise taxes.  There are some things that one should think about in assessing the budget.

This year’s budget was an extremely difficult one to prepare because the worldwide financial crisis has severely impacted on the revenue that the government will earn.  I don’t care what the analysts say, no one knows how long or how bad this financial crisis will be therefore it is difficult to know exactly how much our revenue will be affected.  What compounds the crisis is that we are ill prepared to meet it.  There has been little growth in the economy in the last 20 years and there are no reserves that have been put aside for emergencies.  This is a lesson that all individuals need to learn, one should always put aside something for those unexpected circumstances.

Another point to consider is that for too long Jamaica has been living on borrowed money and now in the time of crisis there is no more money to borrow.  The principle here is to live within your means in other words the country needs to have a balanced budget.  For too long we have borrowed to support the budget and nothing has been left over for development.  In addition too many persons refuse to pay taxes but yet expect that education and health must be “free”.  If all persons who should pay tax were to pay their taxes we would have no problem in paying teachers, doctors and nurses.

It is time to return to our senses; living on credit will only lead to bankruptcy.  Whether we like it or not it is time to make some difficult decisions but if each one will play their part it will be easier on everyone.

Feedback question: What ideas do you have for Jamaica to cut expenses?