$40b bailout plea for poor
Golding demands increased social spending, urges Gov’t to slow pace of debt reduction
Published:Monday | July 11, 2022 | 12:08 AM
People's National Party (PNP) President Mark Golding is demanding that the Government increase the amount of social spending allocated for low-income groups struggling with a cost-of-living crisis and spiralling global inflation.
He put the price tag of the bailout for Jamaica's poorest at $40 billion.
Golding, who was addressing the PNP Women's Movement Conference on Sunday, lambasted the Holness administration for what he describes as “minimal” support for citizens beleaguered by soaring prices for basic commodities such as fuel and food.
“This Government is pulling the wool over the eyes over the people because they are singing the message that they are doing something to support the population, but what they are doing is superficial and cannot have a meaningful impact on the lives of those who need help,” Golding, who is also opposition leader, told the partisan crowd.
Last Tuesday, Finance and Public Service Minister Dr Nigel Clarke announced in the House of Representatives a welfare package of almost $4 billion for Jamaicans buffeted by rising prices for goods and services. That welfare pledge is in addition to $3.5 billion of support unveiled earlier in March.
However, in his remarks, Golding argued that the increase in social spending was far less than the public may realise.
“What they have announced, really, Comrades, is minimal in the scheme of things. The numbers sound big, but don't be fooled by them. They don't even amount to 0.2 of one per cent, not even a fifth of one per cent of GDP of additional social spending on the people,” the PNP president said.
Golding also took issue with the announced increase of $9 million per constituency to support the Constituency Development Fund (CDF) that was also disclosed by Clarke. Approximately $20 million in CDF financing is allocated to each member of parliament annually.
“Comrades, if you have a constituency with, let's say, 40,000 people living in it … that $9 million amounts to a mere $225 per constituent. That can't even buy each constituent a patty at today's prices … ,” he said.
“… We have said nothing less than two per cent of GDP will do. We have said that is $40 billion. Slow down the pace of debt reduction this fiscal year and reallocate those resources,” added Golding.
In his view, these resources would be better spent strengthening existing programmes such as the Programme for Advancement Through Health and Education, the National Insurance Scheme, expanding poor relief, and increasing subsidies for farmers for inputs like fertiliser.
British Member of Parliament Diane Abbott, who was guest speaker at the conference, endorsed the efforts of the PNP and its leadership as she charged the gathering to be proud of the party's work to improve social conditions for ordinary Jamaicans.
She implored Jamaicans to have confidence in the PNP given their track record.
“The PNP has always been the organisation to help Jamaicans pursue the dream, all the way from Norman Manley to now,” said Abbott.