The real Bermuda debt
March 1 2012
To compare our gross domestic product (GDP) with other countries is a complete misnomer as 80 percent of our GDP comes from the profits of the international business sector. Exclude this from the GDP and Bermuda has one of the worst debt ratios in the world. In terms of Government revenue, which the Government has to repay the debt, the ratio is circa 130 percent. The debt is the equivalent of $51,000 per Bermudian compared to $35,000 in the USA, and let’s face it, the US has global expenditure commitments. The current annual debt payment is $85 million a year, yet the Finance Minister has budgeted for another deficit, thereby guaranteeing an increase of the debt ratio, debt repayment, and the amount owned by each and every person in Bermuda. Let’s hope that the average Bermudian understands the real facts, as the future does not look bright for Bermuda and its citizens.
I applaud Christian Dunleavy for his very succinct comments on the budget in
The Royal Gazette of February 28. A further comment to the Finance Minister and her advisers, had they considered that many of the H car licences are for younger Bermudians, but issued in the name of their parents aged 65+ who no longer have driving licenses. By making this one distinction (owner/driver) the Government would cut out most of the increase in the H licences. Many 65+ drivers with H licences need the larger car due to normal old age infirmities. The Budget current tax changes for many senior citizens could be equal to a reduction of 60 percent of their Government pensions.
The Bermuda population is equivalent to a very small town in most western countries and our current Government expenditures, salaries, number of Politicians and Ministers are completely out of line with our population. Reduce the number of politicians and Ministers, halve their salaries, privatise much of the civil service so that it is efficient and cost effective, clear up the past corruption and have the funds returned and just maybe Bermuda can service its current debt and regain its status as “Bermuda is another World”.
A DISILLUSIONED BERMUDIAN
City of Hamilton
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