prepare for an election. Some tough budgets in the last few years, which many people complained about, have left the Minister of Finance in a position to give tough times breaks in all sorts of areas while maintaining and even increasing Government's community services. This is being done in the face of what Dr. David Saul describes as a "dramatic reduction in Government revenues and a resulting shrinkage in current account balances''.

As we see it, the lack of increased taxes and some tax breaks, means that people will have money to spend, thus stimulating the economy. Government cuts brought on by decreased cash demonstrates that Government is prepared to restrict itself rather than burden the public.

This is, in fact, exactly the kind of Budget which was being urged in the United States where the new President has prepared widespread tax increases.

Bermuda, which avoided a huge national debt that is so crippling to the US, is able to provide breaks now which will stimulate the economy without doing harm to the private purse or public services. It really is a remarkable achievement of which any government would be proud.

Bermuda is able to continue large public building projects which provide jobs and to provide more funds for social assistance and housing subsidies for those in need without increasing taxes to do so. This means Bermudians will be taken care of in their tough times without expanding the public burden. Dr.

Saul relies for revenue support on projections the economy and hence Government revenue will improve this year.

The Finance Minister seems to us to have been very careful to give tax breaks where they will be most productive in a tourist and service economy. He assists hotels with both diesel fuel and refurbishing and seems to tell hotels to get on with the job. He eases the "departure tax'' on yachtsmen and some cruise ships. There is also an emphasis on those operations which provide jobs for Bermudians. The Budget recognises in a meaningful way the need to keep Bermudians working in everything from building sites to small businesses. It also gives Bermudians some breaks in terms of car licence fees, import duties and no hike in land taxes this year. He clearly hopes that money will be spent to fuel business.

There are a number of important policy commitments in the Budget. Dr. Saul says that the strategy of the Budget is "on reducing the cost of Government, rather than increasing taxes, while, at the same time, redirecting scarce revenues to support social assistance, housing allowance and job-creation programmes''.

Dr. Saul says while Government will engage in "prudent'' borrowing for major capital projects, it will not borrow for "minor capital works or for current account expenditure''. "Government remains committed to a policy of minimising any undue financial burden on future generations of taxpayers.'' He says -- correctly, given the horrific experience in the Bahamas -- that "small countries, with limited natural resources, whose governments have failed to follow such a policy, probably have placed their people in fiscal bondage for decades''.

"The simple fact is that at this time Government and the private sector alike have to concentrate on keeping costs down in order that the Country as a whole can achieve a higher level of competitiveness in the world markets of tourism and international business.'' He has also told local businesses to look at their marketing and to become more competitive.

Dealing with the fact that this year Government will not increase Customs duties in line with inflation, Dr. Saul says: "This step is being taken in the belief that it will have a dampening effect both on inflation and on subsequent wage demands in the community which, in turn, should help strengthen Bermuda's competitive position.'' He also takes a bow to environmentalists and to editorials in this newspaper when he announces an exemption from duty of passenger motor vehicles powered by electricity.

Times have been tough but this is a people's Budget as opposed to a Budget to expand Government. It is designed to ease the tax burden while making Government more efficient and more responsive to the public. Bermuda must be one of the few places on earth getting tax considerations in the lingering recession.