on the pressure for Budget cuts.

The shortfall was yesterday dubbed "worrisome'' by a Government economic spokesman.

It means Government could exceed the expected $55.9 million deficit for the fiscal year, which ends on March 31 1993.

But last night Finance Minister the Hon. David Saul played down the April-September shortfall, which covers the first half of the fiscal year.

He expected October, November, and December would boost Goverment coffers.

But the deficit is likely to increase Government demands in the looming Budget for departments to tighten their belts even more.

Already Independent MP Harry Viera has raised alarm bells about cuts in Police manpower.

But Dr. Saul is keeping his cards close to his chest.

"It would be wrong for me to comment. Nothing has yet been decided,'' he said.

Dr. Saul admitted, however, the Budget would be "tighter'' than the previous one.

The recession has pushed up demands for social assistance while predicted revenues have been hit by the poor tourism season.

But the gap between expenditure and income is expected to close over the coming months.

Latest economic figures have been revealed in the Bermuda Quarterly Bulletin of Statistics.

This covers the third quarter of the year -- July to September.

It shows that for the first half of the fiscal year -- April to September -- Government took in $155.8 million through such sources as Customs duty, hospital levy, employment and hotel occupancy tax, vehicle licenses, Post Office receipts, and cruise ship and ferry fees.

Compared to expenditure of $192.9 million, this leaves a deficit of $37.1 million, exceeding Budget estimates.

The Government economic spokesman said: "This is worrisome, if you take the line that the Budget deficit for the year was supposed to be $55.9 million.

"Revenue has softened, and expenditure crept up above the normal.'' He added the gap between expenditure and revenues was likely to narrow during the next half of the fiscal year.

In the previous fiscal year Government's revenues fell $20 million short of original estimates.

Dr. Saul has insisted a balance will be maintained in Government's Current Account.

The 1992/93 Budget had anticipated a Current Account surplus of $26 million.

The Current Account covers Government's expenditure on day-to-day operations and does not include spending on capital works such as the new prison and the incinerator.

To counter revenue losses Government has ordered its departments to tighten its belts.

Government's Chief Statistician Mr. Donald Scott said revenue figures generally closed on those for expenditures during the second half of the fiscal year.

"I think you will see a coming together for the fourth quarter, and the final quarter of the fiscal year.'' The bulletin shows during the third quarter Government forked out $96.1 million, compared to the $89.3 million it raised in revenues.

The lion's share of expenditure -- $45.6 million -- went on wages and salaries.