prime minister edward seaga last night presented a budget of 6.9 billion jamaica dlrs the largest in the countrys history which projects increases in capital spending and continued divestment of state companies. In a nationally televised speech to the parliament the prime minister who is also minister of finance said jamaicas gdp grew by four pct the highest level in 15 years while unemployment stood at 23.6 pct down from last years 26 pct. Inflation meanwhile was 9.4 pct as compared to 19.7 pct two years ago. Government revenues were up by 419 mln jamaica dlrs to 4.3 billion enough to finance the entire recurrent expenditure of 3.7 billion dlrs with a 666 mln dlr surplus. Seaga said that with financial accounts in order the government will proceed to reduce the countrys debt service ratio from the current level of 49 pct of gdp to 25 pct over the next five years. During this period he said growth would be targetted at three to four pct. The 6.9 billion dlr budget which represents an increase of 18 pct over last years 5.8 billion will be financed by borrowing of 8.868 billion dlrs and estmated revenue of 1.385 billion. Seaga said 1.835 billion of the budget will go to finance a government capital investment program. The plan which represents a 10.3 pct increase over last year projects greater spending on health education housing and infrastructure. Some 818 mln dlrs in revenue to finance the budget will come from the governments divestment program which seaga said will be stepped up in 1987.
SEAGA PRESENTS GROWTH BUDGET FOR 1987