SEAGA PRESENTS GROWTH BUDGET FOR 1987
prime minister edward seaga
last night presented a budget of 6.9 billion jamaica dlrs, the
largest in the country's history, which projects increases in
capital spending and continued divestment of state companies.
    In a nationally televised speech to the parliament, the
prime minister, who is also minister of finance, said jamaica's
gdp grew by four pct, the highest level in 15 years, while
unemployment stood at 23.6 pct, down from last year's 26 pct.
Inflation, meanwhile, was 9.4 pct, as compared to 19.7 pct two
years ago.
    Government revenues were up by 419 mln jamaica dlrs, to 4.3
billion, enough to finance the entire recurrent expenditure of
3.7 billion dlrs, with a 666 mln dlr surplus.
    Seaga said that with financial accounts in order, the
government will proceed to reduce the country's debt service
ratio from the current level of 49 pct of gdp to 25 pct over
the next five years.
    During this period, he said, growth would be targetted at
three to four pct.
    The 6.9 billion dlr budget, which represents an increase of
18 pct over last year's 5.8 billion, will be financed by
borrowing of 8.868 billion dlrs and estmated revenue of 1.385
billion.
    Seaga said 1.835 billion of the budget will go to finance a
government capital investment program. The plan, which
represents a 10.3 pct increase over last year, projects greater
spending on health, education, housing and infrastructure. Some
818 mln dlrs in revenue to finance the budget will come from
the government's divestment program, which seaga said will be
stepped up in 1987.
 Reuter
