The People's National Party held their 76th Annual Conference over the weekend of September 20-21, 2014 and the following was noted among the achievements:
On the macro-economic front. We are experiencing:
• The narrowing of fiscal deficit; down from 6.7% of GDP in 2011 to a balanced budget in this financial year.
• There is a growing primary surplus; we are comfortably ahead of the targets.
• We are importing less
• Tourism arrivals are up by 4%.
• International investors are coming to Jamaica because they are confident in our stewardship and in the new Jamaica that is emerging, and
• Our recent re-entry into the international bond market was oversubscribed yielding over US$800M. Even more importantly, we got it at the lowest interest rates ever.
• More Jamaicans are in jobs than two years ago; STATIN has reported that 25,700 Jamaicans were employed this year over last year. Unemployment as a result is declining; and is now 13.6% down for 16.3% last year April.
To the aforementioned I say great and more power to the people. The unfortunate truth here however is that the single real positive item that affects the man in the streets directly is the employment statistic.
Jamaicans don't consume the fiscal deficit nor do they consume the primary surplus on a daily basis, but what it means is that the quality services delivered to Jamaicans have decreased. If the PNP government were honest it would also note that roads on average have deteriorated and the government not spending to fix them and as a result the average Jamaican spends more to maintain their vehicle.
We are importing less, why? Because we can't afford it.
Exchange Rate
The exchange rate according to the Bank of Jamaican, in January 2012 stood at US$1:JM$86.78. Today the exchange rate is US$1:JM$112.68. The Jamaican dollar has devalued by some 29.8% making some Jamaican's poorer if their salaries have not increased over the last 2-3 years. Take note Civil Servants who have had a wage freeze.
Fuel Cost and Transport
As a second reference 87 Octane gasoline price, according to Petrojam, as of January 5, 2012 was $95.99 per litre. As of September 18, 2014 the cost of the gas was $120.40 per litre. This represents a 25.4% increase in the cost of fuel. Bus fare for the JUTC customers move from $80 in January 2012 to $120 in September 2014. A whopping 50% increase in the cost of public transportation in the Corporate Area.
Electricity Cost
As a gauge for the cost of electricity according to the Jamaica Public Service, the Fuel and IPP Charge rate in January 2012 was $21.12. Fast forward to September 2014 the Fuel and IPP Charge rate was $25.795, this representing a 22.1% increase in the fuel cost of electricity alone. The average cost of electricity for residential clients in 2011 was approximately $34.20 per kilo watt hour. Please note that this cost included GCT at the time. The government removed GCT on residential clients bills in 2012. The average cost of electricity to residential clients in 2014 is now approximately $41.73. An increase of 22%.
These things impact the basic cost of living for the average Jamaican. So without a doubt Jamaicans will import less as so much of Jamaicans incomes are eroded due to inflation. Don't stop the progress. The progress of the higher cost of living.
National Debt
While it is admirable in all fairness where as the country has gotten an additional US$800M from the floating of a bond it must be noted that the national debt has crown to over JM$2 trillion. Each Jamaican ( man, woman, child and unborn baby) now has a heavier debt burden of over $740,000 each. This is compared to an overwhelming burden of over $480,000.00 per person a few years ago.
So not only has inflation torn into the countries growth and made individuals relatively less wealthy the debt to be born by every Jamaican has grown meaningfully.
Will Jamaica therefore ever have the funds required to adequately support the true development of the country as meaningful chunks of the budget will be dedicated to servicing the nations debt.'
So to all the stellar achievements I see being promoted I say great keep it up.
On the macro-economic front. We are experiencing:
• The narrowing of fiscal deficit; down from 6.7% of GDP in 2011 to a balanced budget in this financial year.
• There is a growing primary surplus; we are comfortably ahead of the targets.
• We are importing less
• Tourism arrivals are up by 4%.
• International investors are coming to Jamaica because they are confident in our stewardship and in the new Jamaica that is emerging, and
• Our recent re-entry into the international bond market was oversubscribed yielding over US$800M. Even more importantly, we got it at the lowest interest rates ever.
• More Jamaicans are in jobs than two years ago; STATIN has reported that 25,700 Jamaicans were employed this year over last year. Unemployment as a result is declining; and is now 13.6% down for 16.3% last year April.
To the aforementioned I say great and more power to the people. The unfortunate truth here however is that the single real positive item that affects the man in the streets directly is the employment statistic.
Jamaicans don't consume the fiscal deficit nor do they consume the primary surplus on a daily basis, but what it means is that the quality services delivered to Jamaicans have decreased. If the PNP government were honest it would also note that roads on average have deteriorated and the government not spending to fix them and as a result the average Jamaican spends more to maintain their vehicle.
We are importing less, why? Because we can't afford it.
Exchange Rate
Fuel Cost and Transport
As a second reference 87 Octane gasoline price, according to Petrojam, as of January 5, 2012 was $95.99 per litre. As of September 18, 2014 the cost of the gas was $120.40 per litre. This represents a 25.4% increase in the cost of fuel. Bus fare for the JUTC customers move from $80 in January 2012 to $120 in September 2014. A whopping 50% increase in the cost of public transportation in the Corporate Area.
As a gauge for the cost of electricity according to the Jamaica Public Service, the Fuel and IPP Charge rate in January 2012 was $21.12. Fast forward to September 2014 the Fuel and IPP Charge rate was $25.795, this representing a 22.1% increase in the fuel cost of electricity alone. The average cost of electricity for residential clients in 2011 was approximately $34.20 per kilo watt hour. Please note that this cost included GCT at the time. The government removed GCT on residential clients bills in 2012. The average cost of electricity to residential clients in 2014 is now approximately $41.73. An increase of 22%.
These things impact the basic cost of living for the average Jamaican. So without a doubt Jamaicans will import less as so much of Jamaicans incomes are eroded due to inflation. Don't stop the progress. The progress of the higher cost of living.
National Debt
While it is admirable in all fairness where as the country has gotten an additional US$800M from the floating of a bond it must be noted that the national debt has crown to over JM$2 trillion. Each Jamaican ( man, woman, child and unborn baby) now has a heavier debt burden of over $740,000 each. This is compared to an overwhelming burden of over $480,000.00 per person a few years ago.
So not only has inflation torn into the countries growth and made individuals relatively less wealthy the debt to be born by every Jamaican has grown meaningfully.
Will Jamaica therefore ever have the funds required to adequately support the true development of the country as meaningful chunks of the budget will be dedicated to servicing the nations debt.'
So to all the stellar achievements I see being promoted I say great keep it up.
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