STATEMENT OF THE JEC FOLLOWING THE BUDGET SPEECH 2002/2003 AT 20.45 HRS. ON 14 JUNE 2002

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The JEC has taken note of the announcement of several measures in the 2002/03 Budget Speech which, if implemented in a timely manner, will significantly improve the investment environment in the country and thereby help in giving a boost in investment flows.

Concerning the measures to boost investment, the JEC :

Welcomes the Public-Private-Partnership Scheme whereby the private sector would be invited to participate in the financing of infrastructure projects;

Notes with satisfaction the proposed setting up of regulatory bodies in view of facilitating investment in key areas such as water, power and waste water;

Welcomes that measures will be taken to streamline investment procedures thus enabling the Board of Investment to fully play its role of facilitator in the investment process; and

Is favourable to the setting up of Equity Funds to boost up investment and will support such initiatives.

The 2002/03 Budget Speech reconciles the twin objectives of sustaining the economic development of the country and protecting the vulnerable group of our society.

The budget deficit for 2002/03, however, remains high at 6%. This level of deficit is a matter of concern and must be reduced - public expenditure's growth must be contained in a rigorous manner if the declared objective of reducing the budget deficit to 3% in 2005/06 is to be met.