Opposition leader Mark Golding has described as “timid and inadequate” the Government’s response to the COVID-19 pandemic which has devastated the economy.

“At this time of crisis, people must be the priority. People must be at the centre of policy.

“However, in the face of the deep economic and social crisis, the approach of the government has been to continue its tight embrace of fiscal conservatism,” said Golding on Tuesday as he made his contribution to the 2021/22 Budget Debate in the House of Representatives.

Golding argued that government must make changes to the budget that will more adequately address the needs of Jamaicans most impacted by the ongoing COVID-19 pandemic.

“Madame Speaker, the annual budget is the government’s opportunity to change priorities and adjust policies. This is when the government should alter its direction, if experience and data show that their approach is failing to meet the needs of the people,” the Opposition leader stated.

Golding, in his first budget presentation since he was elected to lead the parliamentary Opposition last September, noted that the budget for the coming fiscal year only makes provision for J$8 billion in direct COVID-related social support for vulnerable Jamaicans. He noted that this was less than 0.5 per cent of Gross Domestic Product (GDP).

“This is half of the amount provided in the fiscal year now ending, which itself proved to be far too little. This budget does not do right by the Jamaican people, especially the poor, those earning low wages, the unemployed, and elders struggling to survive on the meagre NIS pension that has not been increased since 2018.

“And it is not just individuals who are struggling. Service industries, especially tourism, entertainment, transport and sports, have been hit badly. In those sectors, businesses both large and small now have their backs to the wall. The loan moratorium made available to some of them has now come to an end, but their cash flows have not recovered,” Golding pointed out.

He said these businesses need help from the government to survive.

“Jamaica’s economic recovery requires their survival,” he declared.

Golding lamented that the government has allocated only $5 billion (0.25 per cent of GDP) for business support in the budget. This, he asserted will not be nearly sufficient, given the scale and likely duration of the impact on these industries.

Like the shadow minister of finance, Julian Robinson in his budget presentation last Thursday, Golding also compared Jamaica’s budget allocations to other countries that are also responding to the pandemic.

He said: “Madame Speaker, in contrast, the average expenditure on COVID relief in the OECD countries is 5.8 per cent of GDP. Some, such as the USA and the UK, have provided over 15 per cent of GDP. Many developing countries have spent at least three per cent of GDP to help their populations get through the crisis.

“Madame Speaker, sometimes you must take one step back to make two steps forward. I support the call of the Shadow Minister of Finance for the government to spend an additional J$21.5 billion, or about one per cent of GDP, to fund an adequate programme of support. The focus of this additional support must be spending on the vulnerable sections of the population, and assisting businesses, especially MSMEs, that are struggling to survive,” he said.

Golding argued further that the additional support would also serve as a significant stimulus to the Jamaican economy.

“People who receive the assistance would spend it on food and other basic needs of life, multiplying the flow of money throughout the economy. It would help to reverse the negative growth more rapidly, and reduce the impact on the debt to GDP ratio,” he said.