The National Budget was unveiled today and saw the election promise of free tuition to Bermuda College granted; the expansion of the Economic Empowerment Zone to the eastern and western ends of the Island, and suggested an increase in taxes.

Finance Minister Paula Cox read the Budget Statement in the House of Assembly today and said students who maintain a passing grade will receive free tuition to an established programme at the Bermuda College.

The Government also pledged to give entrepreneurs in the eastern and western ends of the Island a special payroll tax rate for one to two years in the newly created Economic Empowerment Zones.

The Minister said Social Insurance contributions will increase by 6.75 percent starting in August. Ms Cox said the increase would cover the proposed five percent increase in pensions and allowances for seniors.

To combat a period of lawlessness never witnessed before seen Minister Cox said the Government would increase the Bermuda Police Service’s budget by 10 percent, to $155 million.

The Government has strongly supported measures to stem this tide of violence on our streets through a higher police presence and proactive policing, she said.

The increased budget will also cover the implementation of the first three phases of the Police and Criminal Evidence Act.

As part of the Government’s Capital Projects, $15 million has been earmarked for work on the new court and Police complex.

And Government will continue the work on the old Marsh Folly landfill site to convert it into green space, a nature reserve and recreational use Ms Cox said. Both the Progressive Labor Party and United Bermuda Party have pledged to turn the former dump into a park for decades.

And Government has kept their election pledge to provide 500 interest free down payments for first time Bermudian homeowners. A monetary value was not allotted to this initiative in the Budget Statement.

Another election pledge, free day care, was also mentioned in the Budget.

Government has earmarked $1.5 million for free day care for families that qualify for children under four. Families already receiving Government assistance that covers daycare services will be ineligible for the new programme.

The Cabinet Office has also allocated $800,000 for a new London office.

It appears the Ministry of Tourism has had its Budget slashed by $5 million.

And the design and development work for the first urgent care centre, to be located at Southside, has commenced and allocated $2.5 million.

For a full break down see tomorrow’s Royal Gazette