Finance Minister Paula Cox will deliver her fifth and arguably most crucial Budget on Friday.

She is tasked with helping keep the economy going during the recession, while also upholding her pledge to cut spending in all Government departments by more than ten percent.

Bermuda Public Services Union president Armell Thomas said he hoped the right balance could be struck.

"It's important that we tighten our belts in all areas in Government. People cannot live as they used to live.

"But with the recession money still has to be spent inside the Country in order to survive."

He said it was a time to be innovative and for the unions to get together with Government to see what could work.

Those sentiments were echoed by Bermuda Employers' Council (BEC) president Graham Redford who said this year's Budget was more significant because of the economic downturn and uncertain business outlook.

"Bermuda's economic well-being is the concern of all of us, not just Government.

"There needs to be a broad dialogue involving all sectors of the business community and Government, to help Bermuda navigate the rough economic waters with a clear strategic focus."

He said the BEC wanted a reconstituted economic forum to advise Government and he said business input was vital.

"Enabling and encouraging businesses to keep their employees employed is an important component of sustaining the economy.

"Any relief in employment-related taxation would be welcome and certainly we would not want to see any increase in taxation. This is not the time for increasing the taxation or bureaucratic burden on employers."

Mr. Redford said increased government spending was often seen as a way to stimulate economies but across-the-board spending would be the wrong approach.

"Government must take a lead in showing prudent control over spending, in line with what the private sector is having to do.

"Spending on capital projects will be needed to sustain employment in the construction and allied sectors so we would expect to see some commitment in this area."

Family Centre executive director Martha Dismont said it was vital that Government didn't cut back on help for families at this time and she also said the reform of education was vital.

Uneducated youth sometimes descended into crime, said Ms Dismont, who also said the financial assistance programme needed to be supported while retraining programmes to get the unemployed back to work also needed plenty of funds.

Association of Bermuda International Companies chairman David Ezekiel said he hoped there were be no new taxes and that money could be found for duty relief and payroll tax relief on small local businesses.

But he acknowledged Government had a social programme to pay for.

Mr. Ezekiel urged Government to keep a watching brief and come forth with individual packages of help, even it was temporary, whenever a sector needed help.

And he said there was no telling how long the recession would last. "The people who are forecasting how long it is going to last are the same people who had no clue it was coming.

"Most people are saying it will last at least through 2009."

He said the stimulus packages started elsewhere in the world had not started to work their way through the system and he added that Bermuda did not need such a package at this stage.

"Things are difficult here but I don't think they have got to the stage they have in some larger economies."

However he said the recession was being felt in the property market.

The conservative strategy employed by Bermuda's banks had been prudent added Mr. Ezekiel. "At times in the past it was irritating but it has stood us in good stead."

Chamber of Commerce president Philip Barnett said everyone was waiting with bated breath for the Budget but that feedback from various Ministries showed they were expecting cuts.

Mr. Barnett pointed out that Government would get a hike in payroll tax earnings as employers handed over lump sums when they made employees redundant.

And he repeated his appeal for Government to prime the pump by spending on road maintenance to keep people working.