The 2010 National Budget Statement outlines the "road to ruin" for Bermuda, the United Bermuda Party believes.

And it shows that Government is "slow to act, given to spin, undisciplined, self-serving, hypocritical and careless with the people's money".

Shadow Finance Minister Bob Richards yesterday delivered the UBP's official reply to Government's $1.2 billion Budget.

The Opposition MP said Government no longer had large revenues to fall back on, and so instead was raising payroll tax and foreign currency tax.

"The cupboard, as they say, is bare," he said. "But instead of changing their ways, instead of tightening their own belts, they are coming after the people to pay for their cars, their travel, their overseas consultants, their bloated budgets, their expense accounts and their cronies to the tune of more than $100 million in new taxes."

Finance Minister Paula Cox allocated $100 million more for the Budget than she did in 2009/10. This year's Budget saw spending cut on education and social rehabilitation while it increased the purse for tourism, transport and policing.

Mr. Richards said the UBP disagreed with four aspects of the Budget in particular:

• Government banking on a recovery taking place this year;

• Government imposing tax increases and thereby penalising Bermudians for its mismanagement of the public purse;

• Government's lack of "discipline, responsibility and control" in spending;

• Government passing its "spiralling debt on our children and grandchildren".

The Opposition MP criticised Finance Minister Paula Cox for standing by as Government spent $56 million more than it planned in the last fiscal year despite a directive from her to cut spending by ten percent.

He said it was a "double standard" to expect Bermudians to "buckle down and foot the bill for Government while her colleagues carry on without restraint".

Mr. Richards said it was unprecedented that Government spent more than it earned for the past two years. He said Government now had to pay $38 million in interest payments annually, because of the $94.7 million deficit.

He added that since Ms Cox took over the role of Finance Minister seven years ago debt had shot up 400 percent and that Bermudians under 35 will have pay it off at a higher level than previous generations. And he said that 12 years ago, when the Progressive Labour Party became Government, the debt per capita was $5,602. Now it is $36,000.

"The Minister titled her Budget 'The Road to Recovery', but under the weight of these unsustainable numbers we believe the Government is taking us down the road to ruin," Mr. Richards said.

Mr. Richards said it was time "for people to step forward and say this [is] not acceptable, enough is enough". It becomes more important when economic data pointed to Bermuda's economy not receiving much help from the US in terms of tourism revenue, and the possibility that US businesses based here could be included in a new tax regime, he added.

The Finance Ministry's budget is to grow by 55 percent in the coming fiscal year Mr. Richards said most of this was to pay off debt.

"With the rise in Government debt the Sinking Fund replenishment of $28.6 million, plus interest of $38.4 million, almost eats up all of the $77 million increase in payroll taxes," he said. "This demonstrates that the tax increases that working Bermudians will be required to pay now is for yesterday's indiscretions.

"There is not a scintilla of evidence that any lessons have been learned. So how and who will pay for tomorrow's indiscretions?

"The answer to half that question is self evident: we know who will pay — the people of Bermuda."

Mr. Richards added that increasing taxes also risked impacting companies' decisions on whether to outsource jobs or move off Bermuda.

To see what the United Bermuda Party would do to improve Bermuda's economy see Page 7.