Help for first-time home buyers and new health benefits for hard-up seniors were the key themes of yesterday's Budget as Government boosted borrowing to save off the worst of the recession.

Borrowing almost doubled from $90 million in 2007-8 to an expected $172.6 million in 2008-9 and will rise a further $150 million next year.

Meanwhile, Government predicts GDP will fall by up to 1.5 percent this year, putting the Island officially in recession.

However Finance Minister Paula Cox said this year's Budget had been themed 'tenderness in tough times' as she announced interest-free home loans will be phased in while Government has ended stamp duty for first-time buyers on property under $750,000.

And $10 million has been set aside for the FutureCare programme, which will begin within six weeks, offering greater benefits than the Health Insurance Plan (HIP), for around 3,000 seniors.

Premier Dr. Ewart Brown said: "FutureCare represents the most revolutionary change in health care in Bermuda for the past 30 years.

"For an increase of approximately $30 to $40 a person who previously had HIP will now have FutureCare and have hospitalisation overseas included.

"That is a major development when one considers that the incidence of illness increases sharply over the age of 65."

There were no tax hikes in yesterday's Budget while tax concessions on capital imports for major building and renovation projects in the hotel and restaurant sectors were announced.

And the fuel concession for commercial fishermen will be extended while duty rates for a range of energy-efficient goods will be set to zero.

Spending on social programmes such as free child care for poor families continues. Unemployment insurance will also be introduced.

And Government's borrowing limit will soar 82 percent to $1 billion to fund further measures if needed.

It comes as the downturn battered Government income with revised revenue estimates for the current financial year down $21 million, while spending will be nearly $12 million more.

Government's pledge to cut each ministry by 10.5 percent did not materialise with some ministries actually increasing spending.

Capital spending is down by $5 million to $150 million with $22 million for housing, $15 million for the Police/Court building and $16 million put towards the $100 million Tynes Bay Waste Treatment Facility expansion.

Fifteen new wheel-chair capable, low floor buses are on order. Many of them will be based at a new Dockyard Depot to open by the summer to help boost transport with the new cruise pier set to open in May. A new boat is to replace the pilot/rescue boat St. David.

However there was no concrete news on plans to replace the Causeway only that studies were being done and Government was considering a public/private partnership to finance it.

Government is also allocating $500,000 as incentives to encourage the use of small-scale alternative and renewable electricity generating systems.

Despite fears of Bermudians Ms Cox said the Island had the resources to push through tough times which could last for another year.

She said: "I believe in Bermuda we have got the balance right.

"We have alleviated undue hardship on the people and business by not levying taxation at this time.

"Further we have signalled that we will provide relief to sectors so long as there is job preservation for Bermudian employees and we have continued to deliver services."