Bermuda Government’s debt hit $2.515 billion at the end of September. However, the rate of debt growth is slowing as the gap between revenue and expenditure narrows.

In the six months to the end of September, stronger than expected Custom duty receipts and an uptick in payroll tax helped Government stay on track for a full-year projected budget deficit of $134.7 million.

In the first half of the 2017/18 fiscal year the Government achieved a $57.6 million current account surplus, excluding debt service deductions.

When debt servicing is factored in the surplus vanishes to leave a six-month deficit of $63.4 million. That is down from the $100.2 million deficit incurred during the corresponding six-month period in 2016.

Revenues for the period were 6.3 per cent higher that a year ago, due to higher collections in customs duty, payroll tax and stamp duty. In a statement, the Ministry of Finance said these revenue boosts were offset by lower collections in passenger tax and civil aviation receipts dur to the privatisation of the airport and the transfer of the Department of Civil Aviation out of government.

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