May 2015 Financial News

EPOC wants IMF to grant a waiver on primary surplus shortfall

May 06, 2015

THE Economic Programme Oversight Committee (EPOC) wants the International Monetary Fund (IMF) team currently in the island to overlook the Government's primary surplus shortfall based on improvements to the macro-economy.

"Jamaica should be granted a waiver on the performance of the primary surplus," asserted Richard Byles, co-chair of EPOC, at his monthly press briefing held at the Sagicor head office in Kingston yesterday.

Byles added that the the shortfall should be seen within the context of lower inflation and drought which slowed growth. He indicated that the country continued to show a strong commitment towards achieving the "aggressive" 7.5 per cent primary surplus target.

Data provided by EPOC show continued improvement to the country's indicators. The country recorded a US$52.2 million reduction in its trade deficit for January 2015 compared with a year earlier. Tourism arrivals increased year on year and the Bank of Jamaica reduced its core 30 day repo rates by 25 basis points. The country also recorded a 1.2 per cent increase in its labour force to 1.13 million up to January 2015, while consumer confidence hit its highest levels since December 2012.

"Going forward we cannot overemphasise the importance of widening the tax net so that the country can reduce the risk of missing future revenue targets and can execute a reasonable capital programme," stated Byles.

The IMF team is in Jamaica for the 8th quarterly review as part of the country's loan agreement with the US-based fund. The country recorded a primary balance of $117.2 billion to March 2015 which represented a $4.1 billion shortfall on the $121.3 billion target. Tax revenues at $370.9 billion were also lower than budgeted levels of $384.3 billion. However, net international reserves at US$2.35 billion are above the target of US$1.4 billion.

Source:
BY STEVEN JACKSON
jacksons@jamaicaobserver.com
Business reporter
Jamaica Observer
Wednesday May 6, 2015 

http://www.jamaicaobserver.com/business/EPOC-wants-IMF-to-grant-a-waiver-on-primary-surplus-shortfall_18885578