The Government will likely be going to parliament to seek a further suspension of the country’s fiscal rules to create space for a deeper and broader Hurricane Melissa reconstruction response.
Prime Minister Dr. Andrew Holness announced the decision during a special media briefing at Jamaica House on Tuesday.
However, Dr. Holness sought to assure the Jamaican people that this further suspension does not mean a return to reckless spending.
Chevon Campbell tells us more.
Jamaica’s fiscal rules are legal limits on how much the Government can borrow and spend, with the main target being to bring public debt down to 60 percent of Gross Domestic Product, GDP, or less.
The rules also set limits on the fiscal balance and on the public sector wage bill.
In order to accommodate further Hurricane Melissa relief, Prime Minister, Dr. Andrew Holness, says a further suspension may be sought from his fellow legislators.
The fiscal rules can only be suspended in an emergency, such as a natural disaster costing at least 1-point-5 percent of GDP.
The rules were last suspended in December 2025, after Hurricane Melissa.
The only other suspension was in 2020, during the COVID-19 pandemic.
Before the Melissa, Jamaica was on track to hit the 60 percent debt target this year, two years earlier than forecasted.
But despite the pursuit of a further suspension, Dr. Holness says frugality will remain key.
At least one credit agency, Standard and Poor’s, last month warned it could downgrade Jamaica within the next 12 months if the commitment to fiscal discipline weakens and debt keeps rising.
When asked if this is a concern to the government, Dr. Holness says his administration remains committed to meaningful growth and debt reduction as hand-in-hand policies.
And Prime Minister Holness says personnel adjustments are coming across the public sector.
He made the announcement while issuing this warning to individuals he suggests are deliberately sabotaging government recovery efforts.
Prime Minister, Dr. Andrew Holness.