First Programmatic Debt and Fiscal Sustainability Development Policy Loan

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The objective of the First Programmatic Fiscal Sustainability Development Policy Loan (FS DPL1) Program for Jamaica is to increase the efficiency of public financial management and budgeting processes, by supporting efforts to improve the efficiency of public expenditures and investment, and strengthen control of public finances and the effectiveness of government budgeting practices. This reform program is critical to the Government of Jamaica (GoJ) strategy to create fiscal space for priority social and investment spending and increase the growth potential of Jamaica. The FS DPL1 will also support the maintenance of macroeconomic stability while the GoJ adjusts to the deterioration in the global environment while continuing to implement the longer term reform agenda for fiscal and debt sustainability. The FS DPL1 supports actions to: (a) promote fiscal sustainability through control of overall public sector balances and debt generation, and rationalization of public bodies; (b) improve the efficiency of public financial management and budget process; and (c) strengthen the tax administration capacity, reduce tax distortions and enhance the efficiency of the tax system. The Government has made progress on these key components of its reform program, even in the context of the ongoing global economic crisis.