In his opening budget speech, @DrNigelClarkeJa just recognized and acknowledged the tough decisions taken by Portia Simpson-Miller and Dr. Phillips along with the Bruce Golding Administration in our macroeconomic journey.
I love the intellectual honesty.
#FinanceTwitterJa
I love the intellectual honesty.
#FinanceTwitterJa
Tourism has grown for 16 consecutive quarters.
Manufacturing has grown for 13 of the 16 quarters.
Manufacturing has grown for 13 of the 16 quarters.
Can I tell you, @DrNigelClarkeJa is on FIRE 🔥.
Man is so passionate about what’s happening.
New vocabulary for cranes is needed because we are seeing so many different types, from “telescopic” and many more.
Man is so passionate about what’s happening.
New vocabulary for cranes is needed because we are seeing so many different types, from “telescopic” and many more.
Someone just shouted out and called Dr. Clarke the “champion bubbler” in reference to his pervasive use of “bubble up” with respect to economic activity.
Hilarious!
Hilarious!
Average quarterly growth for the last 4 years, “not high” in the MoF’s words, was 1.3%.
As compared to the average for the prior 4 years was 0.3%.
He literary bended down, and did a motion with his fingers that reminded me of the gif below.
Hilarious!
As compared to the average for the prior 4 years was 0.3%.
He literary bended down, and did a motion with his fingers that reminded me of the gif below.
Hilarious!
Dr. Clarke is now counting the “Careers” pages of a Sunday daily.
He is up to 19 pages of jobs recently.
Hilarity ensued.
Going back to Feb 2015, there were only 6 pages of ads with “bare ads” on the pages.
He is up to 19 pages of jobs recently.
Hilarity ensued.
Going back to Feb 2015, there were only 6 pages of ads with “bare ads” on the pages.
Female unemployment fell from 20% in 2013 to 8.6% recently.
Male unemployment is down to 6%.
The gender gap between jobs for men and women has dropped from 9% in 2013 to 2.6%.
Male unemployment is down to 6%.
The gender gap between jobs for men and women has dropped from 9% in 2013 to 2.6%.
Dr. Clarke makes the point that when Singapore has primarily textile jobs in the 60s, they didn’t decry it, they used them to get them where they wanted to go.
This is the same strategy GOJ is embracing.
This is the same strategy GOJ is embracing.
Dr. Clarke just bigged up the bredda that had tweeted about how his BPO job allowed him to pay off the loans, even though he is “a comrade”.
“Prosperity doesn’t discriminate”.
Can someone find the original tweet for me plz? I can’t find it right now.
“Prosperity doesn’t discriminate”.
Can someone find the original tweet for me plz? I can’t find it right now.
Dr. Clarke is discussing Trans Jamaica IPO.
Refinancing of the debt of TJH saw the cost of debt from 9% to 5+%.
GOJ will realize $12B in cash from the $3B+ in Pref shares that it owned in TJH and still own equity.
36,000+ applications.
$1B in applications from public sec.
Refinancing of the debt of TJH saw the cost of debt from 9% to 5+%.
GOJ will realize $12B in cash from the $3B+ in Pref shares that it owned in TJH and still own equity.
36,000+ applications.
$1B in applications from public sec.
Dr. Clarke just announced a $25M grant for entities to advance financial literacy goals.
He also shouted out #FinanceTwitterJa and the work we are all doing.
He also shouted out #FinanceTwitterJa and the work we are all doing.
GOJ will be investing $12B+ in the South Coast Highway.
They will be investing $3.7B on the MoBay bypass. A 4-Lane Road for 15KM.
A number of other projects for MoBay get funding.
They will be investing $3.7B on the MoBay bypass. A 4-Lane Road for 15KM.
A number of other projects for MoBay get funding.
They are funding the construction of the “Emancipation Park” in the West.
$1B to buy 50 garbage & compactor trucks in 2020 and an additional 50 more in 2021, so an additional 100 new garbage trucks will be online within the next fiscal year.
$1B to buy 50 garbage & compactor trucks in 2020 and an additional 50 more in 2021, so an additional 100 new garbage trucks will be online within the next fiscal year.
$1B+ for new buses including electric buses.
$1.9B for the delivery of 30 fire trucks.
$1.9B for the delivery of 30 fire trucks.
$900M in UHWI, which includes the construction of a 6-floor tower. At also includes 7 new operating theatres.
The Western Children Hospital will also get some funding.
MOEYI will get $117B, which is the largest expenditure item behind debt servicing.
The Western Children Hospital will also get some funding.
MOEYI will get $117B, which is the largest expenditure item behind debt servicing.
“Soon we will spend more on Education than we spend on debt.”
New classrooms will be constructed. More schools removed from the shift system.
Nat. Sec. will get $15B in Capital budget (ie infrastructure and building, etc.), renovation of 40 police stations.
New classrooms will be constructed. More schools removed from the shift system.
Nat. Sec. will get $15B in Capital budget (ie infrastructure and building, etc.), renovation of 40 police stations.
$1.5B to the farm roads project to provide access for 20,000 farmers to have smooth transit to markets. 80km of roads.
$10B in loan guarantees for MSMEs has been taken up by DTIs.
Bigee project - to boost VC in JA - should be launched before end of budget process.
$10B in loan guarantees for MSMEs has been taken up by DTIs.
Bigee project - to boost VC in JA - should be launched before end of budget process.
Jamaica spends 0.36% of GDP on cash transfers, LATAM & Caribbean spends 0.2+%.
We spend more on cash transfers for the most vulnerable than the region.
We spend more on cash transfers for the most vulnerable than the region.
Major cleanups coming to many Gullies and Gully Banks around the island.
Dr. Clarke started it with the portion of Sandy Gully that runs through his constituency.
Dr. Clarke started it with the portion of Sandy Gully that runs through his constituency.
A pilot clean up project will start in May Pen, then with the lessons learned from that it will be rolled out to other places throughout the island.
Dr. Clarke just announced the Marcus Garvey Graduate Public Sector Scholarship programme to help them improve significantly, that will allow them to pursue graduate studies locally and the best universities in the world.
This is huge.
Imagine you can work for GOJ and...
This is huge.
Imagine you can work for GOJ and...
potentially get a scholarship to some of the best graduate programmes in the world.
Quite intriguing and brilliant.
Quite intriguing and brilliant.
GOJ will provide 30 fully funded scholarships every year, initially for 5 years but they reserve the option to renew.
It will be for specific disciplines and key areas that are strategic to the goals of GOJ.
Brilliant!
It will be for specific disciplines and key areas that are strategic to the goals of GOJ.
Brilliant!
It will cost $1B over 5 years and will be funded by surpluses from SLB.
Scholarship recipients will be bonded for some time after they complete studies.
Scholarship recipients will be bonded for some time after they complete studies.
Debt principal payments are lower by 13%.
Dr. Clarke made a decision to not politicize why we got into the place of high debt. A very easy tool that most politicians wouldn’t resist to use.
He deserves plaudits for being responsible.
Dr. Clarke made a decision to not politicize why we got into the place of high debt. A very easy tool that most politicians wouldn’t resist to use.
He deserves plaudits for being responsible.
By end of 2021, GOJ will accumulate the following surpluses:
- $12B from Wigton, $6B paid back GOJ debt.
- $12.7B will go towards debt repayment as a result of TJH IPO.
- $4.7B of that came from a dividend.
- $4B from net IPO proceeds
- $12B from Wigton, $6B paid back GOJ debt.
- $12.7B will go towards debt repayment as a result of TJH IPO.
- $4.7B of that came from a dividend.
- $4B from net IPO proceeds
GOJ expects you receive $14B from sale of JPSCo shares and JMB IPO, which will also go towards debt repayment.
PCJ has been receiving 1% of SCT on gas taxes and has accumulated $6B in cash balance.
PCJ has been receiving 1% of SCT on gas taxes and has accumulated $6B in cash balance.
PCJ will be reintegrated into MSET, freeing up $5.7B for GOJ to continue paying down debt.
GOJ wants to ween public bodies off of borrowing from Central Government.
GOJ has accumulated $28B from agencies.
GOJ will pay $73B for accelerated in debt payments approx 3.3% of GDP!
GOJ wants to ween public bodies off of borrowing from Central Government.
GOJ has accumulated $28B from agencies.
GOJ will pay $73B for accelerated in debt payments approx 3.3% of GDP!
When EFF was terminated in 2016 at the beginning of the PSBA. IMF projected 95% Debt to GDP today.
Today, we are ahead by 5points with debt to GDP down to 90.5%.
Primary Surplus Target will be reduced to 5.4% of GDP from 6.5%.
This releases $25B in fiscal space.
Today, we are ahead by 5points with debt to GDP down to 90.5%.
Primary Surplus Target will be reduced to 5.4% of GDP from 6.5%.
This releases $25B in fiscal space.
Even with this, debt-to-GDP will fall to 84% of GDP by end of this fiscal year.
At this rate, we very well may hit the 60% debt-to-GDP target by 2025 that Fitch claimed to be skeptical about and that @DrNigelClarkeJa had previously said we will achieve.
At this rate, we very well may hit the 60% debt-to-GDP target by 2025 that Fitch claimed to be skeptical about and that @DrNigelClarkeJa had previously said we will achieve.
On #COVID19, projected growth forecasts will likely need to be lowered.
He specified the potential downward revisions that may be needed, but I missed the figures 😔
Even with lowered growth outlook, debt is projected to still hit the 60% of debt to GDP target by 2025.
He specified the potential downward revisions that may be needed, but I missed the figures 😔
Even with lowered growth outlook, debt is projected to still hit the 60% of debt to GDP target by 2025.
Nearly 30% of GDP is collected in taxes in JA, where the rest of the region collects 25% of GDP.
GOJ will be giving tax breaks. “Counter cyclical Fiscal” policies [MUSIC TO MY EARS] are favored by this administration.
GOJ will be giving tax breaks. “Counter cyclical Fiscal” policies [MUSIC TO MY EARS] are favored by this administration.
GOJ will be honoring previous @DrPeterPhillips promises (HILARIOUS).
MoF made the argument that this asset tax is a hindrance in the monetary transmission mechanism.
He is setting up for a potential announcement on rolling back the Asset Tax on Financial Institutions.
MoF made the argument that this asset tax is a hindrance in the monetary transmission mechanism.
He is setting up for a potential announcement on rolling back the Asset Tax on Financial Institutions.
GOJ will reduce the asset tax by 50% from 0.25% to 0.125%.
Based on the responses of FIs in terms of expanding credit, will inform how they move re: the balance of the asset tax.
This is literally what I called for many months ago.
Can someone find that plz.
Based on the responses of FIs in terms of expanding credit, will inform how they move re: the balance of the asset tax.
This is literally what I called for many months ago.
Can someone find that plz.
See my thread below where I called for a similar action.
It wasn’t a 50% reduction, so Dr. Clarke was more aggressive.
It wasn’t a 50% reduction, so Dr. Clarke was more aggressive.
Tax givebacks for MSMEs.
A tax credit of $375K for every MSME that files taxes in Jamaica.
Potential Revenue loss is expected to be about $1B.
GOJ wants more people to formalize and file taxes legitimately and get that tax credit.
A tax credit of $375K for every MSME that files taxes in Jamaica.
Potential Revenue loss is expected to be about $1B.
GOJ wants more people to formalize and file taxes legitimately and get that tax credit.
Reducing JACRA fees by 50% for Coconut farmers.
Mortgages are up 74% YoY as a result of the tax changes in last budget and cheaper credit.
GCT will be reduced by 1.5% to 15% effective April 1st!!!!!
Woooooooiiiii.
Mortgages are up 74% YoY as a result of the tax changes in last budget and cheaper credit.
GCT will be reduced by 1.5% to 15% effective April 1st!!!!!
Woooooooiiiii.
To be clear, the 1.5% reduction is in the nominal % rate. Not the actual % reduction.
It’s actually a 9.09% of GCT, or approximately $14B in foregone GCT revenue.
This will likely boost consumption.
It’s actually a 9.09% of GCT, or approximately $14B in foregone GCT revenue.
This will likely boost consumption.
MoF has announced $18B worth of tax cuts.
GOJ will provide an advance of $2B against the budget (not an increase) for MoH to help with #COVID19 preparation and preventative & treatment measures.
GOJ will provide an advance of $2B against the budget (not an increase) for MoH to help with #COVID19 preparation and preventative & treatment measures.
There will be a $7B COVID contingency fund to help with any issues that arise out of COVID19.
It will also consider other health related issues, should conditions deteriorate.
For example, expansion of cash or in-kind transfers, temporary quarantine facilities, etc.
It will also consider other health related issues, should conditions deteriorate.
For example, expansion of cash or in-kind transfers, temporary quarantine facilities, etc.
GOJ is creating fiscal space that in the event we need it, there is a $7B fund that GOJ can dip into to deal with any issues that may arise from #COVID19.
It won’t be used for any frivolity.
To use it, will require a supplementary budget passed by parliament.
It won’t be used for any frivolity.
To use it, will require a supplementary budget passed by parliament.
The MoF hopes we never need it, but if it is needed the contingency facility is there for GOJ to use.
I have so many thoughts on this.
I can’t recall a budget that both cuts debt significantly, gives tax relief and a sizeable fiscal buffer for contingency purposes.
I have so many thoughts on this.
I can’t recall a budget that both cuts debt significantly, gives tax relief and a sizeable fiscal buffer for contingency purposes.
And the MoF’s presentation has concluded.
That’s all folks.
Thanks for staying tuned.
Wake the town and tell the people!
#FinanceTwitterJa
That’s all folks.
Thanks for staying tuned.
Wake the town and tell the people!
#FinanceTwitterJa
The crew that were representing #FinanceTwitterJa at the Opening of the Budget Debate yesterday.
cc: @GuyaneseCV (I couldn’t tag you for some reason).
cc: @GuyaneseCV (I couldn’t tag you for some reason).
