Jamaica must improve PFM ‘to ensure effectiveness of public spending’

17 Jun 15

Jamaica is to receive $40m from the International Monetary Fund after a review concluded the country’s economic performance was “on track and has remained strong” but there remained a need for public financial management improvements.

The fund completed its eighth review of the Caribbean island under a loan programme to boost growth in the country by helping to address structural imbalances in the country, such as infrastructure or private sector access to finance. Jamaica is in its third year of the four-year $923m Extended Fund Facility package.

The latest examination highlighted that continued proactive implementation of the government’s growth strategy would be critical to improve Jamaica’s economic growth and job opportunities.

“Fiscal sustainability relies on fundamental reform to bolster tax compliance and constrain the growth of current spending,” the IMF said.

“This calls for improvements in revenue administration and a sustainable reduction in the public sector wage bill through fundamental civil service reform. Improvements in public financial management are also important to raise the efficiency of public spending.”

However, growth is projected to be 2% in 2015/16, thanks to the full impact of lower oil import costs and the recovery from last year’s drought materialise, the IMF said.

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

Did you enjoy this article?

Related articles

Have your say

CIPFA latest

Related jobs