Spending on Bermuda's business sector is set to go up again after the Ministry of Finance was handed a $152 million budget for 2008/09.

The allocation, which is up $25 million from a total layout of $127 million last year, and by $37 million from 2006, includes $30 million for estimated interest payments on Government debt and Government's statutory contribution to the sinking fund.

The Bermuda Small Business Development Corporation has been given a grant of $3 million to continue rolling out the Economic Empowerment Zone (EEZ) in North East Hamilton, while the grant to the Bermuda International Business Association (BIBA) was increased to $2.6 million.

Elsewhere, links with worldwide trade partners are also set to be developed over the coming year.

In her Budget speech, Finance Minister Paula Cox said Government believes in and fully supports the Island's business sector.

"A strong entrepreneurial base is a crucial driver of economic growth," she said.

"The growth of new business and expansion of existing business stimulates the economy and also provides jobs and contributes to household income.

"An enabling entrepreneurial environment supports businesses and helps to expand opportunities for those who may traditionally have felt screened out of mainstream economic activity."

She said the expansion of the EEZ was key to promoting entrepreneurial enterprise in order to develop innovation among the country's business sector and to provide more options to consumers, with plans afoot to export to the east and west of the Island.

And to help new start-ups in the EEZ build up working capital in their early years, Ms. Cox said Government pledged to extend the period for the special rate of payroll tax from one year to two years.

Meanwhile, in pledging $2.6 million to BIBA, she backed the business organisation in its role of marketing Bermuda as a jurisdiction of choice for international businesses.

"In partnership with the Ministry of Finance, the recent joint efforts have raised Bermuda's profile in the global arena of international business," she said.

"In a similar fashion, the Ministry of Finance has continued its financial support of the Insurance Development Council and the Bermuda Stock Exchange.

"Within Finance Ministry headquarters, the newly-established treaty unit will conduct negotiations with a number of OECD (Organisation for Economic Co-operation and Development) countries. Countries in the schedule for 2008/09 include Germany, Japan, Mexico, the Netherlands, and the Nordic countries.

"In addition, the team will continue discussions with the European Union regarding the Directive on the Taxation of Savings Income."