Bermuda continues to spend more than it earns, the Ministry of Finance reported today.

Government took in $443.5 million and spent $459.4 million during the first half of the fiscal year.

Spending was said to be $28.5 million, or 5.8 per cent lower than the same period for the previous fiscal year.

The figures did not include debt service costs, which added up to $80.5 million for the six months ending in September: $56.7 million in interest payments, plus a $23.8 million contribution to the Sinking Fund for government borrowing.

The debt service to date was $19.1 million more than the same period for last year, owing to higher debt levels. According to a Ministry spokesman, the interest payments on Bermuda’s debt consumed 12.8 per cent of Government’s revenues. He said the average was 4.1 per cent of revenue for comparable countries.

Under the existing Budget, Bermuda has a revenue target of $902 million for the 2014-15 fiscal year, with an expenditure of $1.1 billion, including debt service.

With a capital expenditure of $61.9 million for this fiscal year, the Island will have a projected deficit of $267.3 million. The spending is $14 million less than it was by September of last year.

Financial Assistance is above budget because of increased demand and the cost of damages inflicted by Tropical Storm Fay and Hurricane Gonzalo have yet to be accounted for.

Customs duty is down by nearly 8 per cent, or $7.6 million, but the reduction has been offset by “increased collections in payroll tax of $3.1 million and other revenues totalling $2.8 million”, the spokesman said.

In a review of the Island’s economic performance, the Ministry also released figures said to be consistent with the forecasts in the 2014 National Economic Report of Bermuda.

Difficult economic conditions continued through the year, but the spokesman reported “some positive indicators that show certain sectors of the economy are improving”.

The consumer price index for the year until September was 2.4 per cent, while the 12-month average rate was 1.9 per cent.

Imports decreased by 2.3 per cent in the first two quarters, registering $476 million. The bulk of the drop was attributed to a decline in fuel imports.

Air arrivals as of September had fallen by 3.6 per cent, while cruise arrivals rose 8.3 per cent, adding up to a rise of almost 4 per cent for visitor arrivals over last year.

The Island saw 535 new international companies and partnerships registered in the first six months of this year, up 13.4 per cent on last year’s figure of 472.

The total value of new construction projects begun in the first half of 2014 rose by almost one half, to $26.1 million.

There was also a modest rise in retail sales during the first nine months of the year. Retail was up 0.24 per cent, or $5.7 million.