Fiscal Policy Issues in Jamaica: Budgetary Institutions, the Tax System and Public Debt Management
This paper analyzes budgetary institutions, the tax system and public debt management in Jamaica. It explores the nature of budget institutions and design, beyond formal administrative or budgetary procedures, to address the question of whether the demanding fiscal path Jamaica is following can be put to risk by flaws in the institutional framework governing fiscal policies. The paper also analyzes the requirements for achieving revenues through a tax system that does not distort resource allocation and is complementary to the growth strategy. Finally, it addresses debt sustainability questions under different assumptions and look at debt management within a comprehensive fiscal policy assessment and at the path of public expenditures, primary surpluses and potential debt expansion.