Public-sector workers are being warned that if the Government fails to keep its expenditure in check this year, they could be out of a job next year.

Finance Minister Audley Shaw yesterday made it clear that public-sector workers will have to play their part to cut costs, or else.

"Every government worker has a vested interest in making sure that we achieve savings because if we don't achieve savings in programmes and areas like utilities, there are other areas of savings that are going to have to be targeted and that could be jobs," declared Shaw. He issued the sombre warning as he responded to questions from opposition members of parliament during yesterday sitting of the Standing Finance Committee examining the first Supplementary Estimates.

The opposition MPs were concerned that with the pending increase in electricity rates, the Government would miss its targeted saving of millions of dollar through lower spending on public utilities.

Budget credibility

"The cuts in spending on public utilities go to the heart of the credibility of the Budget. You are aware that JPS (Jamaica Public Service Company) rates are going up. Did you figure the increase in the numbers," opposition MP D.K. Duncan asked.

"We didn't just pull numbers out of the air. There was consultation and, to make it ultimately truly credible, it is for every government worker to buy in to the idea that we can achieve savings," Shaw responded.

The Supplementary Estimates reflect a $78.8-million reduction in the Government's allocation for public utilities this fiscal year when compared with what was allocated at the start of the year.

The Government has also cut $1.4 billion off the money that public-sector entities will get to spend on the purchase of goods, services and equipment while $165 million has been subtracted from the money the entities will have for travel expenses.

"I want to use the opportunity of this Standing Finance Committee to say to every ministry, every government department, .... it is a time for belt tightening, it is a time for cost cutting, it is a time for cutting waste, it is time for cutting inefficiency while increasing productivity," Shaw said.

arthur.hall@gleanerjm.com