Burt: ‘Significant improvement in government finances’
The island has broken from “record” deficits and economic decline to “an economy that is growing, stronger public finances, increased investment in Bermuda and greater capacity to meet the needs of our people while reducing the burden of debt”, the House of Assembly heard.
David Burt told MPs that “as I prepare to step down, this is the progress that I leave to the next Minister of Finance”, as he delivered favourable early reviews of the Government’s performance during the 2025-26 fiscal year.
The Premier and finance minister said: “The preliminary analysis projects a budget surplus of $169.6 million for 2025-26.
“That is $126.3 million above the original Budget estimate of $43.3 million and almost four times the surplus originally projected.
“It is a significant improvement in Bermuda’s public finances, achieved while continuing to invest in the services and infrastructure our people need.”
Mr Burt said the Government’s total revenue for the previous fiscal year was projected at $1.57 billion, coming in at 10 per cent or $143.5 million above the original 2025-26 estimate of $1.43 billion.
Tax earnings also exceeded projections.
Mr Burt said corporate income tax collections were projected to reach $291 million — $103.5 million above the original estimate of $187.5 million — while payroll tax receipts of $637 million were expected, which would put takings at $15 million above the forecast of $622 million.
MPs heard that auditing of the Government’s consolidated fund financial statements for the year ending March 31, 2026 was continuing within the office of the Auditor-General.
Financial statements will be tabled when completed.
Carnival festivities, first estimated to have generated $1.47 million in visitor spending in the aftermath of the holiday weekend in June, have brought in a higher return on investment.
Owen Darrell, the Minister of Tourism, Transport, Culture and Sport, told the House of Assembly that the holiday’s economic value was “a lot more than initially thought”.
Responding to questions from Craig Cannonier, the Shadow Minister of Tourism, Transport and Culture, Mr Darrell said it had delivered an “estimated $1.69 million in direct business sales, and $2.83 million in total economic activity”.
The Government paid $440,000 to carnival planners this year.
Mr Darrell said the figures came from updated estimates given by the Bermuda Tourism Authority through its “event impact calculator”, developed by the firm Tourism Economics.
He added: “The model uses Bermuda-specific data, including visitor spending, accommodation, employment, local tax information and the Department of Statistics’ input-output model.”
Mr Darrell also confirmed that the investment paid to planners had remained at the figure originally announced.
Mr Burt said that current account expenditure for the year, excluding interest, was projected to be $1.13 billion — $24.8 million or 2.2 per cent above the 2025-26 original estimate of $1.11 billion — while capital account expenditures were projected to be $142 million, or $7.8 million below the estimated $149.8 million.
Capital expenditure came with $18.5 million in grant funding for the Bermuda Hospitals Board, $8.9 million for the Bermuda Housing Corporation’s investment in affordable housing, $8.6 million for two new fast ferries, $8.4 million for roadworks and $6.4 million allocated to the Tynes Bay Waste-to-Energy Facility.
Mr Burt said interest and guarantee management costs for last year were projected to be $127.8 million, compared with the original budget estimate of $127.5 million.
He attributed the positive figures to the island’s overall economic growth as well as partnering with industry to put a CIT regime in place that balanced new global minimum tax standards while protecting Bermuda’s competitiveness.
Mr Burt added: “While other jurisdictions stood still, we adapted to a significant change in the global tax system, and turned what could have been a challenge for Bermuda into an opportunity to strengthen our position for the future.”
The island’s unemployment was also said to be at its lowest in “more than half a century”, while the Government had been able to pivot from borrowing to cover annual deficits to cutting net debt that stood at $2.4 billion in 2017, when the Progressive Labour Party regained power.
Mr Burt said the economic progress would guide the Government’s “next phase of relief for Bermudians”.
He highlighted tax breaks that he said had eased the burden on workers from “the highest levels in history under the previous government to the lowest levels we have ever had”.
Mr Burt told the House that the economic improvement in 2025-26 had been achieved while dealing a $30 million subsidy grant to the BHB after it negotiated a wage rise for staff.
He also cited $2.4 million allocated for overhead costs in the Public Service Superannuation Fund, $1 million for mental health support to government employee health insurance clients and $1 million for extra police officers.
Mr Burt said: “As our finances continue to improve, this government will continue to share that success with the people we serve.
“When this Honourable House returns in November, I will provide a further update on the Government’s financial performance for the current fiscal year and announce the next phase of tax reductions and relief for Bermuda’s workers and families.”
• To read the Premier’s statement in full, see Related Media
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