Crafting a budget is an extremely difficult situation, whether funds are available to fully fund it or not.

The steps taken by the Bruce Golding-led administration are not only bold, and necessary, but extremely risky from a political point of view.

These drastic measures, pay freezes and foregoing increase, makes it more evident to me that the prime minister dropped the ball in 2007 when he had a wonderful opportunity to explain to Jamaica's citizens what he and his government inherited.

Too much consumption

Some of these measures should have been implemented years ago, because it is not the meltdown of global economies (the crisis of 2008) that has forced the Golding administration to act - it is the actual state of the Jamaica's economy.

For far too long too much money has been borrowed and it can be argued that very little, if any, tangible or intangible benefits resulted from incurring this considerable amount of debt.

There is absolutely nothing wrong with borrowing but it makes no sense to borrow if there is no resulting benefit because there is a cost to borrowing. This cost is referred to as interest.

In financial circles, a rule that has stood the test of time is that if you want to be wealthy, you borrow to invest, not to consume. We don't have to look very far to realise that most of Jamaica's debt went to consumption.

Jamaica's ability to earn has been terribly damaged and, as a result, interest payments come before the country's citizens, because what is being earned currently is simply not enough.

Citizens to blame

Who is to blame for this terrible reality you might ask? The simple answer is 'citizens of Jamaica'.

It is sad but Jamaicans kept quiet while their livelihood was being given on a platter to both foreign and local investors.

So while the belt-tightening starts, there may be enough blame to go around. At the end of the day, each Jamaican should blame himself or herself for not acting when they had the chance.

Now, it is 'Golding this and Golding that'.

Tell it straight

This is the reason why I believe that this is another opportunity for Golding to set the record straight.

If you don't, you are going to be blamed for all that is going on and you will go down in history as the prime minister that 'mash up' Jamaica. Tell Jamaicans the state of the country's affairs when you took it over. Explain it so the average man can understand. After which, you should tell us all how you plan to fix what you inherited.

People are more likely to be open to sacrifice if they know, for example, why they have to forego pay increases and ultimately what the long-term benefit will be from making those choices now.

By the way, I also think it is time to for a new governor at the Bank of Jamaica, don't you?

I am, etc.,

AUDLEY GILPIN

audleygilpin@yahoo.com

Toronto, Ontario