Gov't must adjust spending if revenue shortfalls continue - Robinson

By Kimone Witter    

 

Opposition Spokesman on Finance Julian Robinson says he accepts that an investigation into the revenue shortfalls on the budget for the current financial year should take place before the government makes a decision on spending adjustments.

 

Mr. Robinson has demanded that the government undertake a comprehensive review and adjustment of its financial strategies to prevent future revenue shortfalls and ensure that fiscal targets are met.

 

But Finance Minister Dr. Nigel Clarke says Tax Administration Jamaica has been tasked with ascertaining, through enquiries and enforcement actions, whether the shortfalls represent a timing difference in the filing of Corporate Income Tax by entities and individuals.

 

As a result, he says it would be premature for the government to change its spending plans.

 

Speaking Thursday on the Morning Agenda on Power 106, Mr. Robinson said the data on revenue coming in over the next month will have to be carefully monitored.

 

"So we are May 2nd now. So April data would be coming in to see whether you have made up for that shortfall that you had at the end of March. Now, in terms of adjustments, the reality is if the revenues are not coming into projection, you can't spend as you projected. So you have to start making the adjustments and you have to start making them soon, because you can't overspend what you're not bringing in," he suggested. 

 

"Now, obviously, as I said, I'll acknowledge that you may need a little more time to determine whether this is just a one-off thing or whether there's a trend. My own view is that I believe there may be a trend based on the tightening in the economy for monetary policy and profits for corporations are generally coming down," said the opposition spokesman.