Government of Jamaica pulls more from Capital Development Fund
Published:Wednesday | March 23, 2011 | 12:00 AM
The Government has made a withdrawal of $362.4 million from the Capital Development Fund (CDF) to help pay the country's bills this fiscal year.
Prime Minister Bruce Golding, who moved a resolution in the House of Representatives for the withdrawal yesterday, said the money being sought was budgeted for withdrawal.
The Government has projected to withdraw $2.1 billion from the CDF, which is financed by the bauxite levy. This third withdrawal brings the total withdrawal from the fund to $1.9 billion this year.
Only $33 million remains in the fund.
Concessions to bauxite companies
Golding has pointed to the downturn in economic activity brought on by the recession that has forced the closure of three of the country's bauxite companies. He told the House that the Government has been making "significant concessions" to bauxite companies as a means of helping them to reopen.
Dr Omar Davies, the Opposition spokesman on finance, asked for details on the concessions being given to the bauxite companies.
"It is clearly a trade-off for labour cost and economic activity," Davies said, while adding that he understood the rationale.
Golding, however, did not give details about the concessions being offered saying "there are some sensitivities in relation to it".
The prime minister has asked mining minister James Robertson and finance minister Audley Shaw to share the information in private with Davies.