KINGSTON, Jamaica. An economist has suggested that the Government make the search for cost savings a routine exercise regardless of how much revenue it collects, after new directives ordered public-sector bodies to halt asset purchases, new leases and hotel retreats.
The instructions, circulated across government agencies last week, tell entities to pause the acquisition of assets and the signing of new leases until further notice, to hold assets ordered but not yet paid for, and to suspend retreats planned at hotels.
They build on an October 21 memorandum in which Prime Minister Dr Andrew Holness imposed an immediate moratorium on official travel across the public sector until the end of March next year. The Government attributed the fiscal strain to Hurricane Melissa.
Economist Keenan Falconer said he knew of no recent financial data showing why the measures had become particularly necessary, but called the consolidation a positive step. He suggested the Government use the opportunity to practise zero-based budgeting where feasible, requiring every spending item to be justified before each new budget period.
The opposition People’s National Party questioned whether the travel ban was a genuine cost-control effort or a public relations exercise. Finance spokesman Julian Robinson said it “raises more questions than answers”, and the party noted the Government has not said how much it expects to save.
— LRTVS News Desk
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