PSOJ assesses Holness’ Budget presentation
Published:Thursday | March 27, 2025 | 12:10 AM
The Private Sector Organisation of Jamaica (PSOJ) says that while the Government’s 2025-2026 Budget sets out growth initiatives aimed at accelerating economic development, their meaningful impact will depend on execution, regulatory efficiency, and sustained investment.
This observation came in a PSOJ analysis of the Budget presentation made by Prime Minister Dr Andrew Holness.
The private-sector body says the Southern Coastal Highway and the Government’s SPARK projects are expected to improve business logistics but notes that concerns remain about delays in project completion as previous infrastructure initiatives have experienced setbacks.
Commenting on business incentives and tax reductions, the PSOJ says the increase in the GCT threshold for small and medium enterprises and targeted tax reductions provide some relief, but broader tax reforms, including lower corporate tax rates, would further enhance private-sector growth.
CHALLENGE
Discussing issues around workforce development, the private-sector group acknowledged that the expansion of training programmes is beneficial, but ensuring that graduates are aligned with private-sector needs remains a challenge. It says that the administration must facilitate stronger collaboration with industry stakeholders.
While welcoming the crime-reduction measures, the PSOJ argues that long-term success will require sustained investments in judicial reform and community policing.
Turning to potential challenges, the private-sector body says despite fiscal improvements, businesses continue to face regulatory delays. It says further efforts are needed to streamline investment approvals and licensing.
Looking at global economic conditions, the PSOJ says inflationary pressures, supply-chain disruptions, and foreign-investment trends could impact the effectiveness of the budget’s initiatives.
The Government received commendation from the PSOJ for its focus on macroeconomic stability, tax predictability, infrastructure expansion, and workforce development.
However, the PSOJ urged continued emphasis on bureaucratic reform to improve the ease of doing business and expedite investment approvals. “While the proposed initiatives hold promise, their success will ultimately depend on execution efficiency, private-sector collaboration, and adaptability to economic challenges.”
Assessing exchange-rate stability and inflation control, the private-sector group highlighted a reduction in inflation to 4.4 per cent, within the Bank of Jamaica’s target range of four to six per cent, and an average exchange-rate depreciation of 2.9 per cent per annum over the past nine years. According to the PSOJ, this stability benefits importers and exporters, reduces business uncertainty, and improves long-term planning.
Yesterday, the PSOJ indicated that it would be partnering with PWC and VM Wealth to host the Economic Budget Review Webinar 2025 today, starting at noon.
The webinar is aimed at providing an in-depth analysis of the national Budget and its potential impact on Jamaica’s economic landscape.
To join the webinar
Meeting ID: 818 8419 5000
Passcode:951262