Premier Craig Cannonier last night hailed the recently unveiled budget as setting the Island on the road to recovery.

The 2014/15 Budget, tabled by Finance Minister Bob Richards on Friday, cuts public spending by $70 million and promises no Government layoffs this year.

However Shadow Finance Minister David Burt said it was “wholly unrealistic” to propose $70 million in cuts without impacting Government jobs.

Commenting on the budget yesterday, Mr Cannonier said: “It gives Bermuda the chance to make amends for the years when indiscipline ruled the public purse, endangering our future.

“Our goal was to break with that past and set the Island on a course toward sustainability, whereby we start paying down the debt, rein in the cost of government and live within our means.

“But let’s not get ahead of ourselves. We have a long way to go. We are not out of the woods, not by a long shot.

“The Budget starts us moving in the right direction, but much remains to be done and, as [Finance Minister Bob] Richards said, there are dangers everywhere.”

Mr Cannonier noted the “mountain of debt” which costs the Island $113 million annually in interest payments and that Government is still spending significantly more than it makes.

“This year we aim to cut the deficit by nearly 20 percent, but we’re still projecting to spend $267 million more than we take in. And economic recovery both here and abroad is uncertain,” he said.

In order to turn around Bermuda’s fortunes, Mr Cannonier said Bermuda must remain disciplined, grow the economy, care for the people and work together.

“This is a big challenge given the fact that we face such serious financial challenges,” Mr Cannonier said. “I am very happy that the Budget stuck a careful balance between the need to get spending under control and meet our debt obligations and the need to meet people’s needs, whether it be in the pledge of no government layoffs this year, no new taxes and continuing social support programmes.

“We have to work better together. We have to set aside differences that keep us apart as a people.

“And the way to do that is to understand that we’re working for Bermuda, for our home, which is in trouble. We have to recognise what is at stake, and that the opportunity before us is more than just recovery. It’s our future.”