facilitate flexible work arrangements and improve access to training in skills required for enhancing productivity in the economy. further, there is a commitment to implement energy sector initiatives to achieve diversification in the sources of fuel and facilitate energy conservation in order to reduce the cost of energy to the economy and more so to the productive sector. as you would have heard from recent presentations in parliament, these initiatives are well underway. these reforms and commitments are all aimed at improving the competitiveness of jamaica ’ s goods and services. accordingly, the macroeconomic programme aims to reduce the hindrances to economic growth such as the macroeconomic instability caused by high and unsustainable fiscal balances and debt. these factors have limited the government ’ s ability to tackle social issues, including the improvement of education and training and the reduction of crime. for the central bank, our primary role is to maintain price stability and financial system stability. bank of jamaica is committed to maintaining single - digit inflation over the medium term with the long - term objective of reducing inflation to the level of our major trading partners. bank of jamaica is also committed to a flexible exchange rate regime consistent with enhancing the competitiveness of the jamaican economy. the combination of low inflation and exchange rate flexibility is a valuable tool in maintaining the competitiveness of our export sector. in addition, the current historically low interest rates are conducive to stronger investment and growth than we have had in the past. what then does the implementation of this programme mean for businesses, small, medium or large? first, a flexible and competitive exchange rate will enhance the ability of jamaican businesses to compete in both the export markets and the domestic market. a flexible exchange rate is an exchange rate that responds to market forces. a competitive exchange rate is an exchange rate that adjusts so as to at least account for the difference between jamaica ’ s inflation and that of our trading partners. the bank is aware of the concerns about recent movements in the exchange rate. however, let me reassure you that the depreciation thus far has been in keeping with our expectations and the policy objective of ensuring that bis central bankers ’ speeches goods and services produced locally can be sold at competitive prices in the global market. this is absolutely essential for export - led growth. the recent movement in the exchange rate also comes against a background where the bank has been steadily and deliberately rebuilding the net international reserves. bank of jamaica had already halted the decline in reserves which, with reason, was a source of considerable concern in all corners

closely monitor performance under the programme. the programme is built on three pillars. the first is fiscal sustainability which means implementing the necessary revenue and expenditure measures as well as a public debt management strategy that will enable the government to achieve a primary surplus equivalent to 7. 5 per cent of gdp in each of the next four years. by bringing the fiscal accounts rapidly into balance, the government ’ s need to borrow is being sharply curtailed thus permitting a steady reduction in debt levels to below 100 per cent of gdp by 2020 ( from nearly 150 per cent currently ). this, balanced fiscal accounts, will be a highly unusual circumstance in jamaica ’ s modern economic experience and it bears careful contemplation as to its likely consequences, which are beneficial, i should add. the policy actions necessary to achieve this have already been taken and are now in place. bis central bankers ’ speeches further, the government has committed to adopt a legally binding fiscal rule in this fiscal year in order to provide assurance to us all that a sustainable budgetary balance will be incorporated into future annual budgets long after the eff has been successfully completed. the second pillar of the programme is built on the government ’ s commitment to structural reforms which will lead to more efficient public financial management. these include tax reform and improved tax administration as well as reform of the public sector and social spending. a major step in the tax reform is the harmonisation of the tax treatment of charities across tax types and the removal of the minister of finance ’ s discretion to grant waivers to charitable organisations. the government has also undertaken to table an omnibus tax incentive bill in parliament to eliminate ministerial discretion to grant tax relief and put in place a transparent regime for limited tax incentives. these reforms are aimed at reducing lost revenue and creating a more performance - driven system of tax incentives for businesses in jamaica. given the drive for sustainable expansion in real output, the third pillar is a growth strategy that is based on catalytic, strategic public and private investments and improved competitiveness. in this regard, the government is committed to taking legislative and administrative measures to create an enabling business environment conducive to investment and growth. within this fiscal year, the government plans to table an insolvency bill and a secured obligations bill in parliament, streamline the business registration process through the use of a multi - purpose registration instrument and commence the process to establish a port community system which will electronically integrate and streamline export and import procedures. the government also plans to move as quickly as possible to