Revenues Increase Through Economic Growth And Not Inflation

$912 Billion Estimates of Expenditure Tabled for 2022/23

Speaking at the closing 2022/23 budget debate Finance Minister Dr. Nigel Clarke, responded to arguments raised by the opposition that the government’s revenue will increase due to inflation.

Dr. Clarke dismissed the statement, noting inflation affects both government’s revenue and expenditure. He went further to defend his no new taxes statement, stating the government is bent on giving back to the people. Finance Minister Dr. Nigel Clarke dismissed statements made by the Opposition Spokesperson on Finance, Julian Robinson, that the government will collect more revenues as inflation rises.

Dr. Clarke points out the opposition’s argument may be misleading, as inflation affects both government’s revenue and expenditure. He points out where there is inflation government expenditure goes up, adding inflation outcomes exceeding budgetary outcomes doesn’t provide a windfall.

Dr. Clarke insists the only thing that provides a windfall is real economic growth. Dr. Clarke went further to defend his no new taxes statement for the new fiscal year, noting where possible the government will always give back to the people. Meanwhile, the finance minister says despite arguments on the relevance of the new bank notes, the new initiative was necessary after prompting from the Bank of Jamaica.

He adds the introduction of a two thousand dollar note will allow for reduction in costs for printing.