By Anthony Morgan

There have been mixed views among Jamaicans over the Government’s announcement of an incentive for the elderly who take the COVID-19 vaccine. However, THE ANALYSTS on Taking Stock with Kalilah Reynolds have labelled it as a positive move.

Finance Minister Dr. Nigel Clarke detailed the new Conditional Cash Transfer for the Vaccinated (CCTV) programme while opening the 2021/22 budget debate. However, to be eligible for the one time $10,000 cash grant, the beneficiaries must not earn a paycheck or pension greater than J$1.5 million (US$10,300) per year. 

The Minister said the grant targets those elderly persons who would otherwise not benefit from other initiatives under the broader $60 billion SERVE Jamaica programme.

Investment Research & Sovereign Risk Analyst at JMMB Group,  Leovaughni Dillion said while the programme could be viewed as a “pay-off” to this vulnerable cohort of the population, he believes the programme will help to prevent the public health system from being further overwhelmed.

“I think it’s a positive move because if these elderly persons get the virus and they end up in hospital, that will lead to limited resources to care for persons with other ailments,” said Dillon. 

Business Writer at the Observer, David Rose agreed that the programme should be viewed as a saving grace for the economy.

“There is extreme stress in the system right now and until we get to that point of herd immunity you’re going to see that stress on the health system. Even though lockdown is not off the table for the Prime Minister, that’s the last thing he wants to do because it kills economic activity and creates further strife,” he said.

For Investment Analyst at PROVEN Wealth, Julian Morrison, an incentive in this instance is not a bad idea, as it has the potential to increase the vaccination rate. 

The government has set a target to vaccinate 65% of the population by March 2022. In week one of the programme, the ministry reported that 94% of the targeted priority groups received the jab despite reported challenges.

“Speed is the name of the game in this scenario and the government needs to ensure that the vaccine footprint is widespread as quickly as possible for normality to return,” said Morrison.

The National vaccination programme is expected to be expanded to other vulnerable groups in the general population next week. 

Health and Wellness Minister, Dr. Christopher Tufton, received his first shot of the AstraZeneca vaccine on Friday, March 19.  Prime Minister Andrew Holness indicated in his Budget presentation that he could receive his first jab as early as next week along with other critical front-line public-sector workers.

Big Budget Take-aways

Meanwhile, THE ANALYSTS said a few announcements stood out for them in the Finance Minister’s budget presentation.

The biggest one was the non-imposition of new taxes for the fourth consecutive fiscal year.  

Leovaughni Dillion said he wasn’t surprised, as asking taxpayers to pay more in the upcoming year would have counteracted the goal of stimulating economic growth.

“If you add additional taxes, that can create some friction and so the govt saw that issue and decided on no new taxes and is implementing some policies in order to drive growth. I’m glad there’s no new taxes to create that extra burden on the economy especially at this time because you need people to be spending to help grow the economy,” he said.

Rose on the other hand has welcomed the abolition of the Customs Administrative Fee on exports valued at US$500 and under.

He said while this will cost the government some $70 million, that sum is just a drop in the bucket considering the benefits to be realized from more micro entrepreneurs and small businesses exporting.

“The majority of exports that got hit with this with CAF were basically exports that were under US$100 and most of them are trying to increase exports and draw in foreign currency to Jamaica so the removal of this fee will actually increase or encourage persons to export their goods more and actually retain more money to reinvest in their own business,” reasoned Rose.

Morrison said he was more happy to hear that the government would be spending 7% less on debt than what was projected in the 3rd supplementary estimates. He reasoned that it was an indication of how the government intends to manage its borrowing costs over the next year.

He said the budget is in line with achieving stability first before getting more aggressive with social spending and investments.

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