The Budget underlined overspending by the OBA, Shadow Finance Minister David Burt said last night.

Mr Burt added that Government figures showed it had overspent by $45 million in its first year — despite wage concessions offered by trades unions.

And he said that Government had also increased its workforce by 233 people, although it had pledged to cut the cost and size of the public service.

But business figures backed Finance Minister Bob Richards and a more open approach to overseas investment and an easing of rules to guarantee majority Bermudian ownership of Island businesses.

Mr Burt added that the OBA had also increased travel spending by 48 percent, while the Island had lost more than 900 jobs in 2013.

He said: “All this while the OBA still speaks of the situation that they inherited from the previous Government — however, the facts mentioned above happened under their watch.”

Mr Burt added: “The Minister of Finance attempted to give a long and unbalanced economic lesson, while ignoring the shortcomings which presented themselves in the first year of OBA governance.”

And he said: “Though the PLP concedes that we must reduce the cost of the Government, it is wholly unrealistic for the Minister to propose $70 million in cuts without recognising the impact that it will have on Government jobs.”

Mr Burt also criticised “a lack of specifics” on areas like banking, energy and healthcare reform.

But economics expert Peter Everson, who sat on the SAGE Commission, which was set up to cut public expenditure and sits on the economics committee of the Chamber of Commerce, said Mr Richards’ analysis of the economy was in line with Chamber data.

he added: “The strategy of closing the Budget deficit at a pace that the economy can withstand is consistent with the recommendation from SAGE.”

Mr Richards also signalled relaxation in the 60/40 rule, which was designed to guarantee majority Island ownership of local business, to stimulate inward investment.

Mr Everson said: “The economic protectionism provided by the 60/40 rule is incompatible with the need to grow the Gross Domestic Product (GDP) and thus his call to review this is welcomed.

“The requirement for greater involvement by foreign businesses in Bermuda is the key understanding of how to grow GDP. This requires more foreign investment capital and people.”

And he added: “Only when that is achieved can meaningful growth take place.”

Tom Miller, managing director of professional services firm PwC Bermuda said” “The Minister outlined the serious position that Bermuda is facing and the need to make changes.

“He outlines an expected 15 percent cost reduction plan over three years and is counting on SAGE Commission initiatives plus future revenue growth to bring the Budget back in balance.”