A matter of national concern
What this chart shows should concern all of us: Government Revenue (Orange Line) When the orange line of revenue is under the red line of spending, Government is spending more than it takes in and is in deficit. The projected reveue is not likely to be achieved due to the fall in GDP and non-payment of fees and taxes to Government. Government Spending (Red Line) The gap between the orange line of revenue and the red line of spending is always filled by Debt or Savings. If the gap is BELOW the orange line, this represents savings (surplus). If the gap is above the orange line, it means debt. National Debt (Green Line) National debt is the accumulation of Government debt which is rising due to Government borrowing. As Government has limited tax options, it must borrow to fill the gap between the blue and red lines. Full Debt Service Costs (Purple Line) This consists of Interest payments plus the 2.5 percent contribution to the Sinking Fund. This is rising as only the interest payment is being paid there is no principal reduction. There is also a deficit in the sinking fund which was designed to make provisions for repayment of debt. Debt service as percentage of Revenue This is the percentage that must come off each dollar of revenue that has to be committed to making Interest payments + Sinking Fund contributions There is a forum being held at Cathedral Hall on September 13 from 12pm to 2 pm and again at 5pm to 7 pm to allow the public to come and get involved in stimulating Bermuda's economy and shaping the future. * The story and graphic have been edited as the original contained some errors, which were made by us. We are happy to apologise to Larry Burchall and Sir John Swan.