Bermuda’s annual Budget Debate, typically a significant event for political discourse and public scrutiny, has been delayed by about two months following the Progressive Labour Party’s (PLP) victory in the February general elections.
The PLP, led by Premier David Burt, secured its third consecutive term in government, winning 25 out of 36 parliamentary seats. The budget, which outlines the government’s taxation and spending plans, is usually presented and approved before the start of the new financial year on April 1. However, this year’s timeline has been disrupted, raising concerns about fiscal transparency and planning.
Prior to the election, the Premier’s office assured the public that the election would not impact the budget process. However, a recently announced schedule proves otherwise, prompting criticism from the One Bermuda Alliance (OBA). The opposition party expressed frustration over the lack of communication from the government, noting that its MPs first learned of the new Parliamentary and Budget dates through the media. In a statement, the OBA questioned whether this approach aligns with Premier Burt’s pledge of a new spirit of outreach and collaboration.
The delay comes despite the recent Throne Speech and the Pre-Budget report released in mid-December, which were seen as indicators of the PLP’s fiscal plans if re-elected. The decision to revise these plans has sparked speculation that it may be linked to the PLP’s share of the popular vote, which was less than half—a first in Bermuda’s modern political history.
One of the main points of interest in the upcoming Budget will be funding for government workers’ salaries. The Pre-Budget report proposed a 3% overall increase to cover pay raises, but questions remain about whether this is sufficient to meet promises made to unions just before the election. Healthcare funding, particularly for the hospital, is also expected to be a contentious issue, with OBA spokesperson Robin Tucker voicing concerns about ensuring adequate support for this sector.
Absentee voting, a long-standing issue, is also in the spotlight. The OBA highlighted that it had allocated funds for absentee voting in the 2016 and 2017 budgets, only for the PLP to subsequently remove them. The opposition is now calling on the government to fulfill its election-time pledges to restore this provision.
Social Insurance and government worker pensions are under scrutiny as well. The OBA has urged the government to release the 2023 Pensions Actuarial reports, which are expected by the end of March, to provide clarity on the stability of these funds.
Meanwhile, the business community is closely watching the government’s handling of the Corporate Income Tax (CIT). There are concerns about how international bodies like the OECD might respond and the potential impact on Bermuda’s attractiveness as a business hub.
As Bermuda awaits the revised Budget, the OBA has pledged to continue advocating for all Bermudians, promising to scrutinize the government’s plans thoroughly.
