Gov't should not adjust budget simply due to Russia-Ukraine conflict, says Chung

 

Financial analyst Dennis Chung says if the Government decides to adjust the 2022/2023 budget, it should not be due to the conflict between Russia and Ukraine.

 

Mr. Chung says the impact of the invasion could be reduced between now and April, when the new financial year begins.

 

Opposition Spokesman on Energy Phillip Paulwell had suggested that the estimates of expenditure needs revision based on the astronomical increases in the price of oil expected to result from the conflict.

 

In an interview with Radio Jamaica News, Mr. Chung said the Government should review the budget to determine whether its forecast will be negatively impacted. 

 

"There are certain triggers. If everything is left as is, it could die; this situation could end with just Russia and Ukraine. If there are situations that cause Russia to say 'I'm not providing oil to anybody', then that also is something that could affect it. But they have to look at the entire thing. They have the technical data and I think they should really look at it. I'm not saying that they should recast it because I don't know how it's going to play out and they would have their assumptions behind it," he reasoned.  

 

The budget will be reviewed by the Standing Finance Committee of Parliament over two days, starting on Tuesday.

 

With the expected short term impact of the Russia-Ukraine conflict, Mr. Chung said the Jamaican Government should implement policies to reduce the amount of fuel the country will need. 

 

"So, if they were to focus, for example, on putting a good public transportation system in and having more people take public transport, or putting policies in place that discriminate against people driving their personal vehicle into certain areas, then that is one solution. They could also look at ensuring that all electric vehicles and all renewable energy equipment comes in with no cost associated with it at all and encourage people to do that," he proposed.