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Cap the national debt - Golding
By
Al Edwards, Business Co-ordinator
MR.
BRUCE Golding, who recently returned to the Jamaica Labour
Party (JLP), said the best way to spur growth in the economy
is by proper fiscal and monetary management and a proactive
approach to try and stimulate new investment.
"In
the short term, a way that could impact significantly on the
economy is trying to assist existing idle capacity to get
back up to speed," Mr. Golding said. He was addressing
The Gleaner's Editor's Forum last Friday.
"There
are businesses that still have not recovered from the savaging
of FINSAC," he said. "If I had those decisions to
make, one thing I would want to do quickly up front is to
make businesses more attractive by giving them a little help
out of the hole that they are in.
"That
would mean returning to production quickly and putting people
to work as quickly as possible."
The
country's burgeoning debt has long been a hindrance to the
economy and ways to curtail its reliance on borrowing have
been the subject of much debate.
"It
is absolutely necessary to reduce our current reliance on
debt. One of the things I would like to see is a cap put on
our debt," he said . "I'd like to see a Government
that says look, here is where our level of debt is now and
we won't be borrowing a dollar more and then put in place
a phased programme for its reduction.
"I
think the debt mountain is the country's number one problem.
Ideally I would put a cap on our debt right now and would
structure a programme of downward adjustment over a period
of time.
"The
PNP targeted a reduction of the debt to GDP ratio to 100 per
cent by 2006 and then 90 per cent, as part of the strategy
to manage the national debt and reduce debt servicing costs.
I think that would be a reasonable target but I would like
to go beyond that, I would like to see the debt go down to
more than 60 per cent of GDP and I think we should specify
this."
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