ABSTRACT
This chapter examines in a relatively detailed fashion the financing of public expenditures during the period. It analyzes the structure and development of the public budget. The chapter examines how the structure of revenues has changed and how this relates to structural change of output and employment and how revenues have changed over time— with respect to volume as well as to the performance of other countries. Rapid increases of public expenditures and desperate attempts to increase revenues at the same pace created structural shifts in the economy which aggravated the situation of the early 1970s. The Jamaican budget is divided into two accounts: the current and the capital account. Incomes are tax revenues, profits from public enterprises and the like. Capital incomes are income from interest, income from the sale of assets, and so forth. Jamaica is thus an economy in which production and income grew rapidly during the 1960s.
