Fiscal Policy Issues in Jamaica: Budgetary Institutions, the Tax System and Public Debt Management

In this paper we analyze budgetary institutions, the tax system and public debt management in Jamaica. We explore the nature of budget institutions and design, beyond forma administrative or budgetary procedures, to address the question of whether the demanding fiscal path Jamaica is following can be put to risk by flaws in the institutional framework governing fiscal policies. It also analyzes the requirements for achieving revenues through a tax system that doen not distort resource allocation and is complementary to the growth strategy. Finally, it addresses debt sustainability questions under different assumptions and look at debt management within a comprehensive fiscal policy assessment and at the path of public expenditures, primary surpluses and potential debt expansion.