Stimulus package to increase deficit

A new research is indicating that the fiscal deficit will increase in the new financial year because of the stimulus package announced last year by Prime Minister Bruce Golding.



This means that Jamaica will have to borrow more money or seek more grants in order to meet the obligations in the next budget.



The Caribbean Policy Research Institute, CaPRI has found that the Government will be foregoing $2.2 billion because of the structural changes it made to some sectors.



According to CaPRI, this means that the Government will incur an additional deficit of 0.2 per cent of the Gross Domestic Product.



Senior Researcher at CaPRI, Latoya Richards says the stimulus money could have been used on other initiatives.