Jamaica’s Fiscal Management Improving

• Following difficult reforms, including streamlining the government and reducing public outlays, Jamaica's fiscal deficit has turned into a modest surplus, and Fitch expects this to continue over the coming decade. 
• Fitch’s view for sustained fiscal consolidation is supported by efforts to expand the tax base. Although Jamaica has lowered its corporate tax rate as part of its ongoing efforts to improve the business environment and incentivise investment, the government has worked to simplify its consumption tax framework and eliminate tax breaks for some industries, which will lead to increased revenue over the long term. 
• Better fiscal management on the part of the central government is critical for Jamaica's future since investors concerned about the country's long-term viability will need assurances that further defaults are not on the horizon. Fitch believes that a political consensus has emerged over demonstrating a firm commitment to more sustainable economic policy, which will underpin progress from a business environment standpoint.

(Source: Fitch Solutions)