2025/26 Budget is for the People – Senator Johnson Smith

Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, says the 2025/26 budget “is for and about the people of Jamaica.”   

“The budget identifies the Government’s priorities in terms of the goals and aspirations for the development and upliftment of the Jamaican people. For us, those elements touch every facet of life, every mother and father, every child, every household, every student, every teacher, every worker and workplace, every citizen at all stages of life across the country,” she said. 

Senator Johnson Smith, who is Leader of Government Business, was piloting the  Appropriation Bill in the Upper House on Friday (March 28), which outlines how the Government will spend the $1.26 trillion allocated in the 2025/26 Estimates of Expenditure. 

The Bill, which was approved, authorises expenditure for the financial year and stipulates how the money will be allocated for the various programmes of the Government. 

Senator Johnson Smith contended that the budget presentations by Prime Minister, Dr. the Most Hon. Andrew Holness and Minister of Finance and the Public Service, Hon. Fayval Williams, provided a feasible and sustainable path towards national development, “reflecting the sound and steady leadership Jamaica continues to need if we are to achieve our developmental goals in the interest of all Jamaicans.” 

She said that more Jamaicans understand the direct link between the Government’s good economic management and the ability to provide critical programmes that will improve their lives.  

“The Prime Minister…spoke about the next chapter, about not only maintaining fiscal and macroeconomic stability but accelerating growth,” she pointed out. 

Stating that the Government has been a responsible steward of Jamaica’s trust, Senator Johnson Smith said, “we have been disciplined in paying down the debt because we understand that this is how you ensure that the Government has room to spend sustainably on things that matter to the Jamaican people.”  

She noted that through a well-managed fiscal and monetary policy, the average annual inflation has been 5.5 per cent, which is the lowest in over 50 years, and the current annual inflation is down to 4.4 per cent, which is at the lower end of the Bank of Jamaica’s (BOJ) target range of four to six per cent. 

In addition, the unemployment rate is at a historic low of 3.5 per cent and the country is on a path to achieving a debt to gross domestic product (GDP) ratio of 68.7 per cent by the end of the fiscal year. 

“Since 2016, we have created 253,000 new jobs, an average of 28,000 jobs per year. In 2016, youth unemployment was…at an alarming 32 per cent, meaning one of every three young people was unemployed, and now it is down to 11 per cent, a third of where we found it,” Senator Johnson Smith highlighted. 

She noted that the budget, which represents yet another consecutive year with no new taxes, balances fiscal prudence with social investment, enabling the Government to increase support to the most vulnerable, encourage formalisation of micro and small businesses and to help them thrive, and reset the transformation of education and skills training. 

She further highlighted special provisions to empower creatives and ensuring a stable tax environment that will foster wider employment, while continuing to address security concerns. 

Senator Johnson Smith acknowledged that while there is still work to be done, Jamaicans can be proud of the significant progress the country has made.  

Government Senator Kavan Gayle, in his contribution, said the budget prioritises investments in critical areas such as education, healthcare, infrastructure, national security, and social protection. 

“This prudent allocation of resources is not just an administrative exercise. To this Government it is a moral responsibility, and as we approve these allocations we must ensure that the public funds are used efficiently and with accountability, so that every  Jamaican… feels the tangible benefit of national development,” he said.  

“This is a budget for the people, a budget for progress, a budget for the future and it secures Jamaica’s place in an evolving global landscape ensuring that we do not just survive but we intend as a country to thrive,” he added. 

Other Senators who contributed to the debate are: Hon. Dr. Dana Morris Dixon, Damion Crawford, Professor Floyd Morris, Sherene Golding Campbell, Hon. Delano Seiveright, Dr. Elon Thompson, Lambert Brown, Marlon Morgan, Janice Allen, and Abka Fitz Henley. 

The legislation was approved in the House of Representatives on March 25, following the close of the Budget Debate.