One could be forgiven if, for a moment or two, while listening to the 2025-26 Budget Statement, it felt like we are living in nirvana, where everything is ticking along perfectly.

Who would not want to believe that? Unfortunately, just as we are starting to feel good, we realise that our reality is out of alignment with what we are hearing.

The glowing economic statements communicate strong growth in gross domestic product, low unemployment and a budget surplus.

This is all very good news. Yet, for most Bermudians the day-to-day experience is crushing cost of living, crumbling infrastructure, concern about cost overruns on major government projects, a decimated Bermudian population continuing to decline, while our young people choose not to come home.

Close to 25 per cent of our population are seniors, who by nature of ageing are contributing less to our economy, while requiring more services and social support. Traditionally, it has been the younger working population that has filled that gap, but thousands of those people have left Bermuda and are not likely to come back.

So, while the Budget Statement provides an optimistic story, the truth requires some injection of reality.

Over many years we have been very fortunate that strong performance in international business has driven the success of our economy. Unfortunately, at the same time we have seen an exodus of people — Bermudians, non-Bermudians, individuals and families — who previously contributed to our economy by paying taxes, and buying products and services from local businesses. The more people paying into the pot, the less it costs everyone. The reverse is also true.

Given the difficult time that most Bermudians are having with the cost of living, it is very good to see tax breaks on some government services. With the challenges of our ageing population, it is also great to see the removal of the 12-month waiting period for new HIP and FutureCare policyholders to access the Personal Home Care Benefit. Hopefully, this will help to relieve some of the issues contributing to bed blockages at King Edward VII Memorial Hospital, as well as provide some relief to family caregivers.

We are glad to see the 2025-26 Budget includes additional social benefits to help ease the economic burden in the community. But in addition to the social fixes outlined in the Budget Statement, we need to see the Government’s economic, go-forward plan for reviving the local contribution to the economy, which is going to require people.

Unfortunately, the 2025-26 Budget fails to even begin to address the elephant in the room — immigration. So, for now, the plan for Bermudians appears to be: let’s continue putting out fires with less and less water. This does not solve our problem or grow the local economy.

• Linda Smith is the Shadow Minister of Youth, Social Development and Seniors, and the MP for Southampton West Central (Constituency 31)