High expectations for Golding’s Budget speech
ECONOMIST AND financial analyst Dr Adrian Stokes says he is expecting Opposition Leader Mark Golding to explain to the country, in his contribution to the 2024-2025 Budget Debate today, how he would fund his proposed increase in the income tax threshold from $1.5 million to $3 million.
Golding, in his address to the People’s National Party (PNP) annual conference last September, as well as in the run-up to the local government elections, had pledged that a government led by him would increase the income tax threshold to $3 million.
“That’s fertile area for the Opposition l eader to give a perspective on in terms of how he would achieve the movement from $1.5 to $3 million and, importantly, over what time period he would do so,” Stokes said.
In his opening contribution to the Budget Debate last week, Finance and the Public Service Minister Dr Nigel Clarke announced that the Government would move the threshold from $1.5 million to $1.7 million.
Chartered accountant Dennis Chung said he hoped Golding’s suggestion to increase the income tax threshold from $1.5 million to $3 million was anchored in an approach that would spell out how the country would increase productivity. He said that, in the absence of increased productivity, moving the income tax threshold to certain levels would only fuel inflation.
The chartered accountant said he had done the computation on the increase to $1.7 million before the finance minister made his presentation. Chung said he had expected the increase that the finance minister announced to come out at $1.7 million.
Chung argued that the increase that the minister announced was the maximum that could be done at this time, noting that if the movement was higher it would affect the fiscal balance.
FOCUS ON SOCIAL ISSUES
Stokes, in the meantime, not only expects Golding to address the income tax threshold issue, but is anticipating the central piece of the Opposition leader’s presentation to the country to focus on social issues.
He is expecting Golding to discuss how the Budget should be organised and spent in a way that encourages economic growth that is inclusive and takes into consideration the most vulnerable in the society.
Stokes told The Gleaner that Golding’s contribution should touch on education in general and training in particular and how to improve the human capital and drive productivity in the country.
He is looking forward to the Opposition leader’s suggestions on how the Government could lift up those at the base of the income ladder and how the per capita income of Jamaicans can be improved.
At the PNP’s annual conference last September, Golding said the next PNP government would introduce a programme to assist households in regularising their electricity consumption. This would include the installation of solar panels in people’s homes.
ENERGY SUPPLY
Stokes said he wanted to hear Golding flesh out this proposed policy, noting that an important aspect of that suggestion has to do with the sustainability of the supply of energy by the Jamaica Public Service (JPS) going forward.
He noted that when people come off the national grid the remaining customers would have to pay the prevailing cost to supply the energy.
“What would be the compensating policy to deal with those who remain on the grid? Is there a bigger policy that relates to the usage of renewables by JPS and importantly, not just renewables but the cost of that energy supplied to JPS which impacts the consuming public?”
Chung agreed with Stokes that the Opposition leader will have to address the issues affecting people and what can be done to improve the lives of Jamaicans.
He argued that ideas across the political divide are converging but that the difference is how the Government and the Opposition outline how they plan to execute similar policy positions.
Chung said Jamaicans should no longer be satisfied with the promises made by politicians but should insist that they provide clear details about how they will be executed and delivered.