Gov’t Restates Commitment to Fiscal Responsibility and Sound Debt Management

Government Senator, Keith Duncan, has reaffirmed the Administration’s commitment to fiscal responsibility, emphasising efforts to manage the country’s debt while implementing critical programmes and policies that safeguard and enhance the quality of life for Jamaicans.

Making his contribution to the Appropriation Bill 2026 debate in the Upper House on March 27, Senator Duncan affirmed that the Government will continue to safeguard the most vulnerable in society.

The legislation, which authorises expenditure for fiscal year 2026/27 and outlines how funds will be allocated across government services and programmes, was approved without amendment.

“In 2022, in response to rising energy prices, the Administration launched the ‘We Care Energy Co-Pay Programme’. The Government implemented a direct pass-through to the JPS (Jamaica Public Service Company), where the Government paid 20 per cent of the electricity bill for households consuming 200 kilowatt hours or less per month, benefiting more than 457,000 people,” Senator Duncan said.

On the matter of hedging, he explained: “Former Minister of Finance, Dr. Nigel Clarke, noted that hedging is costly, unpredictable, and can result in losses if poorly timed, as was evident in 2015.”

Hedging is an investment strategy designed to limit potential losses that may arise from actual or perceived market fluctuations.

As it relates to fiscal responsibility and overall debt management, Senator Duncan noted that the debt-to-GDP ratio is projected to rise to 68 per cent this year, before trending downwards to 60 per cent by the 2029/30 financial year.

“We remain committed to fiscal responsibility and managing our debt dynamics,” he assured.

Turning to the National Housing Trust (NHT), Senator Duncan announced that construction is projected to begin on more than 10,000 housing units this year.

“The NHT will be spending $53.7 billion in capital expenditure this year, which is almost 50 per cent of the total public body spending, on housing solutions,” he said.

Meanwhile, Senator Duncan noted that Jamaica’s macro-fiscal position has significantly changed in the aftermath of Hurricane Melissa.

He indicated that prior to the hurricane’s passage, Jamaica had recorded fiscal surpluses in seven of the eight fiscal years up to 2024/25, with the sole exception being the COVID-19 year of 2020/21.

He added that the country was also on track to achieve a 60 per cent debt-to-GDP ratio ahead of the forecasted timeline.

“Since Melissa, however, the trajectory of public finances has been altered materially. As a result, the Government is pursuing an aggressive development and growth agenda over the next three years, and beyond, to return our economy to pre-Melissa GDP levels by financial year 2028/29, and to reduce fiscal deficits over this period while looking to sustain growth over the average one per cent growth levels we have experienced for far too long,” he said.

Senator Duncan highlighted four guiding principles critical to Jamaica’s rebuilding efforts: building in the right places; creating systems resilient to failure; developing regional sub-economies with distinct productive identities, employment bases, and growth capacity; and expanding the broader economic base.

“These four principles… are not abstract ideas. They are already being applied in the rebuilding of Black River and Falmouth, and they will guide every investment decision under NaRRA (National Reconstruction and Resilience Authority), going forward,” he said.

Legislation to establish NaRRA was tabled in the House of Representatives on March 19.

The new authority will be vested with special powers to fast-track development approvals and procurement, enabling resilient infrastructure projects to be executed at a scale and speed unprecedented in Jamaica.