Phillips: Gov't must explain departure from debt reduction targets

Opposition spokesman on finance, Dr Peter Phillips says the government must state clearly why it has abandoned efforts to reduce the debt to Gross Domestic Product (GDP) ratio to 120 per cent by the end of this fiscal year.

The former People’s National Party administration had committed to achieving the target, and had made progress in reducing the debt under the programme with the International Monetary Fund.

Phillips says the government must emphatically pursue a debt reduction strategy as it is the only way of ensuring the sustainability of Jamaica's quality of life and improvements in the quality of services over the medium to long term. 

IN PHOTO: Finance Minister Audley Shaw opening the Budget Debate

However, Phillips says the government is projecting that the debt to GDP ratio will remain constant this year at 124 per cent.

The opposition spokesman says it is possible that there are justifiable reasons for these projections.

However, Phillips says the Finance Minister has not given any indication of what these reasons may be.

Phillips was speaking at a post budget press conference Thursday afternoon.