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[QUOTE="Queen, post: 86853, member: 27"]
Jamaica is cracking open new taxes after eight calm years, betting J$35 billion in fresh levies will patch hurricane damage without blowing up a debt pile racing toward J$2.9 trillion.

New taxes break eight-year streak
[LIST]
[*]Jamaica is adding net new tax revenue for the first time in eight years.
[*]The previous stretch saw no rate hikes and even a lower General Consumption Tax.
[*]The government plans a J$35-billion package over two fiscal years to 2028.
[*]Annual J$11.4-billion housing agency transfers will continue.
[/LIST]
Hurricanes force fiscal rethink
[LIST]
[*]Hurricane Melissa battered the island last October.
[*]Fiscal gaps are projected between 1.5% and 4.9% of GDP.
[*]Accumulated shortfalls top J$500 billion over four years.
[*]Total public debt could reach J$2.9 trillion by 2030.
[/LIST]
Borrowing versus capital spending
[LIST]
[*]Capital budget jumps from J$55 billion to nearly J$100 billion.
[*]Loan inflows range between J$230 billion and J$440 billion.
[*]Domestic borrowing will carry most of that load.
[*]Excess loans beyond capital outlays will fund operations.
[/LIST]
Debt rules and exposure risks
[LIST]
[*]Financial Administration and Audit Act tightened fiscal discipline.
[*]Debt stabilized around J$2 trillion before Melissa struck.
[*]World Bank, IMF, and USAID hold sizable obligations.
[*]Foreign-currency debt, mostly US dollars, amplifies exchange risk.
[/LIST]
[/QUOTE]

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