EPOC Reports Increase in Gov’t Revenue

Government revenues have rebounded after missing the initial targets for fiscal year 2023-2024.

That’s according to the Economic Programme Oversight Committee, EPOC.

EPOC says the government was ahead or within target for its fiscal benchmarks for the fiscal period ending in July.

The Committee released the new data at its quarterly media briefing on Friday.

Mahiri Stewart tells us more.

The Ministry of Finance in April revealed that government revenues underperformed for the financial year which ended in March.

Government revenues for 2023-24 were $97.5 billion dollars or 11.8% ahead of the prior fiscal year.

But this was still $22.4 billion less than budgeted.

However, data reviewed by EPOC for the quarter ended in July, show revenues already ahead of target.

However, due to the impact of Hurricane Beryl and other emerging fiscal realities, Mr. Duncan expects a supplementary estimates to the budget to outline the changes in the government’s spending priorities.

And Mr. Duncan has raised concern about the slowing economic outlook.

Jamaica’s economic growth is estimated have stalled for the April to June quarter, with a further contraction expected for the period ended in September.

The EPOC Chairman is urging the Bank of Jamaica and the Government to craft effective policy to drive growth.

Meanwhile, EPOC Chairman, Keith Duncan, is urging the Bank of Jamaica to be more aggressive in reducing interest rates.

Mr. Duncan says driving interest rates down will be key to spurring economic activity.

The Bank of Jamaica’s current interest rate is 6.75%.

That’s down from the seven-percent rate maintained for nearly two years.

Adjusting interest rates is the key tool utilised by the Bank of Jamaica to fight inflation.

However, Mr. Duncan believes with inflation tamed, the Central Bank can afford steeper cuts in interest rates.

Keith Duncan, Chairman of the Economic Programme Oversight Committee, EPOC.