Bermuda is no longer projected to have a budget surplus this fiscal year.Forecast revenue and expenditure figures indicate a $1.1m deficit is now likely when the fiscal year ends on March 31.An upwards revising of how much interest is being paid on debt is the reason the originally projected surplus of $7.4 million is no longer expected.The Ministry of Finance has released a fiscal performance report at the halfway point of the 2019-20 fiscal year.It noted the unplanned $170 million Government has borrowed to make good on a legacy obligation as a guarantor of the Caroline Bay project. Part of that additional borrowing, some $88.5 million, occurred during the period covered by the half-year fiscal data.In the six months to the end of September, Government’s balance sheet was $7.6 million in the red. That was a big improvement on the $46.8 million deficit at the same point in 2018. However, last year’s figure included a $32 million contribution to the Sinking Fund, something which was not made this year.The first half fiscal performance data also showed:• Total revenues of $545.4 million, 48.8 per cent of the full-year projected total of $1.118 billion.• Interest on debt expense of $58.3 million, down $3.4 million compared to the first half of the 2018-19 fiscal year.Regarding the fall in interest expenses for the first six months, which was 5.8 per cent lower than the same period in 2018, the Ministry of Finance, in a statement, said: “This is due to lower debt levels and strategic asset/liability management by the government in which relatively expensive debt has been refinanced by less expensive debt.”Total expenditure for the six months was $552.9 million, which is 49.4 per cent of the full-year projection of $1.119 billion. The expenditure total has been revised upwards by $8.4 million with, as mentioned, interest on debt the reason for the anticipated additional cost.The Ministry said: “The increase in borrowing runs counter to the plan that was outlined in this Government’s budget statement in February which stated that we had no plans to incur any additional long-term borrowings in this fiscal year. “While this turn of events was unplanned, the Government’s commitment to being prudent stewards of the public purse remains unchanged.”Government’s current account expenditure to date is $463.8 million, almost unchanged from a year ago. Capital expenditure is $30.8 million, up $4.4 million primarily due to a new capital grant for the West End Development Corporation to develop King’s wharf, and other Ministry of Public Works development projects.The Ministry of Finance said increases in revenue from Customs duty, payroll tax, foreign currency purchase tax, telecommunications receipts and passenger tax were offset by lower receipts in land tax, hotel occupancy tax, stamp duty, civil aviation receipts and all other receipts.The Ministry believes the strength of payroll tax and passenger tax receipts increase the chance of Government meeting its total revenue target for the end of the fiscal year.Meanwhile, it said current expenditures, excluding debt service, is tracking $200,000, or 0.05 per cent, below budget estimates.Gross debt at the end of September was $2.7 billion. Net of the Sinking Fund, debt was $2.56 billion.• Click on Related Media to read the full details released by the Government, in a PDF, along with two supplementary PDF tables