2024 Neo Kingston Budget
The 2024 Neo Kingston Budget was presented by Finance Minister Jarrett Lindsay on January 11, 2024 to the House of Representatives. It was the third budget presented by Lindsay and the third of the Premiership of Kristy Jordan. The budget was presented as a continuation of the commitment of the government to eliminating the budget deficit, with tax measures and expenditure focused on alleviating the effects of high inflation and promoting real GDP growth over the medium term.
Weaker than expected economic performance (GDP growth, inflation and unemployment) during 2023 meant the the government's previously stated plan to reduce the deficit to under 0.4% of GDP in 2024 could not materialize. The budget received criticism for its reduction in the maximum rate of income taxation long with a reduction in some business taxes, and its failure to meet deficit reduction expectations. Still, Jarrett presented plans to reduce barriers to employment, increase investment in primary and secondary education reforms at the local level, reduce costs to businesses, and the elimination of the national budget deficit in 2025.
Revenues were budgeted at $8,279,388,047,938.44 (38.2% of GDP). This represents a small nominal increase over 2023 but a 0.3% reduction as a percentage of GDP.
Expenditures were planned at $8,452,778,373,549.72 (39% of GDP), the lowest since 2019. With a reduction in planned spending of nearly $500 billion over 2023, this marks the largest year-over-year downward shift in 14 years.
The country's budget deficit fell to $173.3 billion or 0.8% of GDP. A sixteenth consecutive annual budget deficit, this is nonetheless the lowest since 2020.
Budget details
Economic projections
Economic growth throughout 2024 is projected to be in the range of 0.7% to 1.5% with a possible acceleration to between 1.4% and 2.4% in 2025. Inflation is expected to fall to around 2.7% in 2024, just above the central bank's 2.5% target and the lowest since 2020. Unemployment throughout 2024 should fall to around 4.7%, the best since 1946.