
Premier and Finance Minister David Burt enters the House of Assembly grounds on Friday morning to deliver his first budget statement. With him are junior finance minister Wayne Furbert and finance ministry officials. February 16, 2018
The nutshell:
Government is planning on spending just under $1.2 billion over the next year, while raking in just under $1.1 billion. It will borrow the difference of about $89 million. About 16 % of its estimated spend will be vaporised by interest payments on Bermuda’s $2.5 billion debt, leaving just over $1 billion for services and capital needs.
Here are the key points
Economic outlook
- Economy remains stagnant although there were some modest signs of strengthening due mainly to the America’s Cup
- Unemployment rate remains at 7% – marginal job growth (0.1% or net increase of 40 jobs) last year
- Visitor arrivals and visitor spending up by 7.2% and 20.3% respectively
- Retail sector increases sales by 2.9% and jobs by 0.7%
- Imports increased by 17.6% in the first nine months of 2017 – mainly due to America’s Cup.
- Total value of new construction starts in the first nine months of 2017 increased by 517.8% – due primarily to St Regis and airport projects.
- Actual value of construction put in place declined by 7%
- Growth forecast for 2017 revised downward from 1.5%–2.0% to 0.75%–1.25%.
- Inflation stable at 1.9%
- Balance of Payments surplus strong – surges by $288 million over 2016 – at $672 million
- New international company registrations decreased by 1.1%
Personal Taxes
- Payroll tax expected to bring in $454 million in 2018/19, 41.7% of total Government revenues.
- Tax reductions for those earning less than $96,000
- Tax relief for new positions created in Bermuda
- End the notional salaries concept
- Tax relief for employers who hire disabled persons
- First year tax holiday for new businesses
- 50% reduction for taxi industry – to be paid by owners
Customs duty
- Expected to bring in $234 million or 21.6% of revenue
- Sugar tax to be implemented
- Tax on certain veggies to be eliminated
- Duty relief for sports clubs with youth programmes
- Duty lowered for textiles
- Duty on tobacco and wine to increase
Other taxes
- Temporary 5% increase on land tax for commercial properties
- Increased fees for cell phones
Capital Spending
- Expected spend: $62 million
- Largest item is a $6.3 million loan repayment on Cross Island
- Bermuda Housing Corporation grant is $4.8 million
- Schools and roads maintenance $3 and $3.3 million respectively
- $3 million for new buses
Ministry Highlights
Education and Workforce Development
- Education gets $140 million, an increase of $5.8 million
- Senior schools get a $1.9 million boost
- Bermuda College gets $300k to support students in need
- $225k in new money for Workforce Development training programmes
Economic Development and Tourism
- $38 million budget – up $3 million
- BEDC gets $1 million in new money to expand its capacity to lend money for new businesses
- BTA grant = $26 million, increase of $1 million but conditioned on prioritising marketing
Health
- $190 million budget, up $27.3 million which restores $25 m subsidy for hospital care for children, indigent and seniors
- Another $1.8 million will go toward reopening fourth floor of Sylvia Richardson facility, more community health nurses, vector control, and the child health programme.
Legal Affairs
- $600k in new money brings the budget up to $27.7 million.
- more legal aid lawyers and three pupillages
National Security
- $131 million budget – a $2.1 million reduction by cutting overtime of uniformed services
Public Works
- $74 million, down by $1 million – to be saved by moving from rented premises to owned
Transport and Regulatory Affairs
- A $62 million budget
- $3 million for new buses
- $500k toward solar rebates for thermal units for seniors on low incomes
- $2.5 million to replace Doppler weather radar system
One More Thing…
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This article belongs to Politica ! The original article can be found here: Summary of Budget 2018 – Key points at a glance
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