Daraine Luton, Staff Reporter

IF YOU are hoping that the roads in the community will be repaired this fiscal year, financial analysts advise that you prepare for a bumpy ride.

The mounting credit crisis in the United States (US), and other major international markets, has fuelled fears that the Ministry of Finance will not be able to raise all the money required to finance the country's $489.5-billion budget.

"A whole lot of the roads and bridges cannot be fixed this fiscal year," says financial analyst Anne Shirley.

Impact of rain

But Transport and Works Minister Mike Henry is not worried that the developments in the world economy will affect his ability to carry out the road-repair programme planned for this year.

"I don't know why anyone is harping. I have not complained yet," Henry tells The Sunday Gleaner. "We have a bill of about $12 billion. The rain continues to hamper us and create some increased costs."

Nearly $9 billion was budgeted for expenditure on roads and infrastructure this year.

Henry says the October rains are impeding his ability to effect repairs to roads, drains, gullies and bridges.

"Give me until December 1 and I will make December work look like December and January work (combined)," Henry states.

He adds: "One of the things I am saying to contractors and anyone working is 'Buy lights'. I am not treating night as night; I am treating night as day."

Funding Implications

Prime Minister Bruce Golding admitted last week that the economic downturn in the United States would have implications for Jamaica's ability to source money.

"Our financing programme for 2008/09 is predicated on securing a further US$250 million from the external market. That market is not now in good shape," Golding said on Friday at the annual awards banquet of the Jamaica Manufacturers' Association.

However, the prime minister argued that Jamaica did not need to source those funds until early next year. He admitted that the forecast for market conditions at this stage was uncertain, given the liquidity crisis.

No good news

But Opposition Spokesman on Finance Dr Omar Davies says "there is no good news involved" in the US financial meltdown.

Raising money to finance the budget on the overseas market, Davies says, will pose its own problems.

"In times of crisis, regardless of the US problem, people head for the US. They consider the dollar a safer bet because it is the reserve currency for the world. People head for the US treasury, so there is going to be a challenge," Davies argues.

He adds, "the challenge can be dealt with, but you need to deal with it within the context of a clear statement of where we are. One of the problems of the administration is that they have been trying to paint this rosy picture."

Meanwhile, figures from the finance ministry show that at the end of August, the Government had underspent on capital projects by $6 billion.

Davies says the Government must say what has been cut and why. He maintains that the budget is not credible.

'Hype events'

The opposition spokesman stopped short of saying the Government's priorities were misplaced, even as he criticised what he described as spending on "hype events".

"... On the other hand, the hype things are being provided with funds. I think there is a need to explain to the public why. This feel-good factor can't work when people are faced with harsh realities," Davies charges.

There has been no official word from government on the cost of a weeklong homecoming celebration for Jamaica's athletes who won a record 11 medals at the Beijing Olympics.

The Sunday Gleaner understands, however, that the event has burnt a $65-million hole in the budget.

Already, the Golding admin-istration has been faced with numerous financial challenges.

Last week, Dwight Nelson, minister without portfolio in the Ministry of Finance and the Public Service, said that the Government would not be able to find the approximately $15 billion to increase teachers' salaries to 80 per cent of their colleagues in the private sector.

That comes as no surprise to financial analyst Shirley, who claims "Enough money was not in the budget to cover salaries."

daraine.luton@gleanerjm.com