You are here -allRefer - Reference - Country Study & Country Guide - Caribbean Islands >

allRefer Reference and Encyclopedia Resource

allRefer    
allRefer
   


-- Country Study & Guide --     

 

Caribbean Islands

 
Country Guide
Afghanistan
Albania
Algeria
Angola
Armenia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belize
Bhutan
Bolivia
Brazil
Bulgaria
Cambodia
Chad
Chile
China
Colombia
Caribbean Islands
Comoros
Cyprus
Czechoslovakia
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
Georgia
Germany
Germany (East)
Ghana
Guyana
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Israel
Cote d'Ivoire
Japan
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Latvia
Laos
Lebanon
Libya
Lithuania
Macau
Madagascar
Maldives
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Nepal
Nicaragua
Nigeria
North Korea
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Seychelles
Singapore
Somalia
South Africa
South Korea
Soviet Union [USSR]
Spain
Sri Lanka
Sudan
Syria
Tajikistan
Thailand
Turkmenistan
Turkey
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Venezuela
Vietnam
Yugoslavia
Zaire

Caribbean Islands

National Income and Public Finance

The greatest contributor to national income in 1985 was government services, accounting for 18.6 percent of GDP, followed by manufacturing at 15.7 percent, distributive trade at 15.3 percent, agriculture at 8.8 percent, construction at 5.4 percent, mining at 5.1 percent, and the balance in various other services including tourism (see fig.__ Jamaica. Structure of Production-- Distribution of Gross Domestic Product (1985)). The decline of agriculture and the rise of industry and services marked the Jamaican economy in the 1980s. A large underground economy also persisted. Many self-employed peddlers, locally referred to as higglers, worked in the large redistributive trade that often fell outside the formal economy; therefore, they were not taxed or recorded in official data. This included some higglers who received merchandise through illicit imports, thus circumventing official import regulations. More important, there was a large underground economy based on marijuana growing and trafficking. Some analysts estimated that the underground economy was equivalent to over half of the official economy.

The fiscal year in Jamaica extends from April 1 through March 31. As required by the Constitution, the minister of finance submits the annual budget to the House of Representatives, the final authority on the budget, before the end of the prior fiscal year. Budgeted expenditures are divided into a capital and a current account, also called a recurrent account. For decades, the surpluses on the current account were not adequate to finance the envisioned capital expenditures, such as physical and social infrastructure, creating structural budget deficits.

Beginning in the early 1970s, expansionary fiscal policies created deficits in both current and capital accounts, financed by internal and external borrowing. Although the fiscal deficit as a ratio of GDP rose from 5 percent in 1972 to 20 percent by 1979, it had decreased to under 12 percent by 1985 and to under 2 percent by 1986. Total government expenditures in 1985 amounted to US$823 million, whereas revenues reached only US$583 million, resulting in an overall deficit of US$240 million, or 11.6 percent of GDP. Budget deficits in the 1970s and 1980s were increasingly financed by external borrowing. Fueled by extensive foreign borrowing and relatively high interest rates, the national internal debt rose from 9 percent of GDP in 1972 to 45 percent in 1979 and exceeded 58 percent of GDP in 1985. By the early 1980s the economy had spiraled into serious indebtedness, causing total debt servicing to account for 43.6 percent of total government expenditures in 1985. The crisis appeared likely to continue, as over 65 percent of its debt servicing bill was destined for interest payments alone.

Data as of November 1987

Caribbean Islands - TABLE OF CONTENTS

  • Section > Jamaica


  • Go Up - Top of Page

    Make allRefer Reference your HomepageAdd allRefer Reference to your FavoritesGo to Top of PagePrint this PageSend this Page to a Friend


    Information Courtesy: The Library of Congress - Country Studies


    Content on this web site is provided for informational purposes only. We accept no responsibility for any loss, injury or inconvenience sustained by any person resulting from information published on this site. We encourage you to verify any critical information with the relevant authorities.

     

     

     
     


    About Us | Contact Us | Terms of Use | Privacy | Links Directory
    Link to allRefer | Add allRefer Search to your site

    allRefer
    All Rights reserved. Site best viewed in 800 x 600 resolution.