Adjusted Budget surplus expected to be $16m more
A strong labour market and job growth were credited today for driving a revised government revenue projection of $1.47 billion for 2025-26 — almost $40 million more than the original estimate.
David Burt told the House of Assembly that non-corporate income tax returns resulted in the increase but added that a revised forecast for CIT receipts indicated the new levy would yield $12.5 million on top of the amount first anticipated.
The Premier and Minister of Finance provided an update ahead of a Pre-Budget Report and findings of the Fiscal Responsibility Panel, which he said would be presented to Cabinet on Tuesday and made public next week.
He told the House: “The Ministry of Finance’s midyear assessment indicates that total revenue for 2025-26 is now projected to be $1.47 billion, an increase of $38.3 million above the original budgeted figure of $1.43 billion.
“This improvement is driven by stronger non-corporate income tax revenues, which are now forecast to increase by $26 million to $1.27 billion, compared to the original estimate of $1.24 billion.
“A significant component of this improved revenue projection is continued labour market strength and job growth, leading to a projected increase in payroll tax collections of $15.3 million from the original estimate of $621.7 million to $637 million.”
Mr Burt added: “Based on feedback from the Corporate Income Tax Agency, CIT receipts for this fiscal year are now projected at $200 million, an increase of $12.5 million above the original estimate of $187.5 million.”
He noted that a supplementary estimate tabled last week provided additional funding for priority programmes across the Government.
“As a result, total current account expenditure is now projected to be $1.13 billion, which is $17 million above the original estimate of $1.11 billion,” the Premier said.
“Interest and guarantee management costs remain stable at $127.5 million, consistent with budget expectations.
“Capital account expenditure is projected at $154.2 million, $4.4 million above the original allocation of $149.8 million, reflecting the supplementary funding.”
MPs heard that the revised budget surplus for 2025-26 is forecast to be $59.8 million, an improvement of more than $16 million on the original budgeted figure of $43.3 million.
Mr Burt said: “It should be noted that even without a boost to CIT receipts, the projected surplus would have been above the original estimate from May’s Budget.
The Premier noted that an annual audit of fiscal results from 2024-25 was complete, which meant he could provide confirmed figures from last year for MPs.
He said: “Total revenue for fiscal year 2024-25 was $1.27 billion, which is $40.4 million above the original estimate.
“Continued economic growth, including $32.1 million more in payroll tax receipts than originally forecast, contributed significantly to this positive result.
“Current account expenditure was $1 billion, $10.7 million above the original estimate.
“This amount is far less than the combined amounts of the midyear review to strengthen social and community programmes, and the public officers’ pay increase totalling $38 million, meaning savings in other areas offset these increases.
“Capital expenditure for the year ended at $103.6 million, $8.8 million below the original estimate.”
The Premier told the House that the Budget surplus for 2024-25 was $29.8 million — an improvement of $29.5 million from the original estimate of $230,000 and $10.1 million higher than the revised estimate provided in Budget statement in May.
He said that “the PLP government has a firm grip on the country’s finances and continues to deliver better-than-expected financial results”.
Mr Burt highlighted the latest data that showed the island’s economy expanded for a fourth consecutive year.
He said: “Growth was broad-based, with strong contributions from international business, construction, health services, information and communications, and other key sectors.
“GDP per capita increased to $143,878, indicating a rise in economic output per person.
“This positive macroeconomic performance is translating into improved outcomes for Bermudians in the workforce.”
The Premier also noted figures from the November 2024 Labour Force Survey Report, which said unemployment was recorded at 1.4 per cent, compared with 2.8 per cent a year earlier.
For Bermudians, the figure was 1.3 per cent, a drop from 3.3 per cent in November 2023.
Youth unemployment was said to be 3.4 per cent, down from 13.5 per cent a year earlier.
Mr Burt said: “These are not abstract statistics — they represent Bermudians finding jobs, earning better wages and fully participating in Bermuda’s economy.
“It is also important to underscore that the continued strength of the labour market and the continued expansion of our economy are directly connected to the decisions this Government has made: decisions to reduce taxes for workers and local business, execute on Bermuda’s Economic Recovery Plan and implement the Youth Employment Strategy.
“This government has reduced the payroll tax burden on workers to the lowest level in history while strengthening protections for workers.
“At the same time, we have invested in Bermudians through expanded training, increased apprenticeships and more scholarships.
“The results I have shared today prove that this government’s economic plan has stabilised public finances, earning Bermuda ratings upgrades and international commendation.”
• To see the Premier's statement in full as well as a copy of the Budget statement from May 2025, see Related Media
You must be Registered or to post comment or to vote.
