The Minister of Finance & The Public Service is clarifying misleading statements in the media today that suggest that the budget for the upcoming FY 2025/26 signals “contraction.”

Minister Williams said that “There are indeed spending cuts that are specifically related to Jamaica’s debt servicing (amortisation and interest payments). As a point of information, these declined significantly for FY 2025/26 versus FY 2024/25 by J$159.4 Billion Dollars. This is a good thing for Jamaica’s economic health especially because in the past, our national budget would reflect major payments towards interest payments. This is no longer the case.”

Interest expenses as a % of tax revenues

The Minister further explained that the reduction in debt-related payments has allowed the Government to prioritize increased investment in key sectors, including education, and healthcare. “Our fiscal strategy remains focused on growth and resilience. When, as a country, we have lower debt obligations, we can allocate more resources toward initiatives that directly improve the quality of life for Jamaicans and drive sustainable development.”

She emphasized that the overall expenditure for FY 25/26 reflects the Government’s commitment to sound fiscal management that has been a hallmark of this administration while ensuring that critical services remain well-funded.

“By reducing our debt burden, we are strengthening Jamaica’s economic stability, improving our ability to respond to global financial changes and external shocks, while ensuring that we continue on the path of sustained growth and prosperity,” Minister Williams added.

The Minister of Finance & The Public Service takes this opportunity to encourage the public and stakeholders to review the fiscal documents in their entirety to gain a clear understanding of the Government’s financial strategy and priorities.