Bermuda projects $170 million surplus as Burt prepares to leave finance post
Key Points(5)
- Bermuda is projecting a $169.6 million budget surplus for the 2025/26 fiscal year, nearly four times the amount originally forecast, as Premier and Finance Minister David Burt prepares to step down and hand over a stronger public purse to his successor.
- Burt presented the government's preliminary fiscal results to the House of Assembly on Oct.
- 2, highlighting stronger-than-expected revenue and continued economic growth as evidence of the government's fiscal turnaround since taking office in 2017.
- The projected surplus is $126.3 million above the original budget estimate of $43.3 million.
- Total revenue is projected at $1.57 billion, $143.5 million, or 10%, above the original estimate of $1.43 billion.
Bermuda is projecting a $169.6 million budget surplus for the 2025/26 fiscal year, nearly four times the amount originally forecast, as Premier and Finance Minister David Burt prepares to step down and hand over a stronger public purse to his successor.
Burt presented the government's preliminary fiscal results to the House of Assembly on Oct. 2, highlighting stronger-than-expected revenue and continued economic growth as evidence of the government's fiscal turnaround since taking office in 2017.
The projected surplus is $126.3 million above the original budget estimate of $43.3 million.
Total revenue is projected at $1.57 billion, $143.5 million, or 10%, above the original estimate of $1.43 billion. Corporate Income Tax collections are expected to account for much of the increase, reaching $291 million — $103.5 million above the budgeted $187.5 million.
Payroll Tax revenue is projected at $637 million, $15 million above the original estimate.
Burt said the improved position had allowed the government to reduce debt while continuing to invest in public services and infrastructure.
Current account expenditure, excluding interest, is expected to reach $1.13 billion, $24.8 million above budget. Capital expenditure is projected at $142 million, $7.8 million below the original estimate, while interest and guarantee management costs are expected to total $127.8 million.
The government spent $30 million on a subsidy to the Bermuda Hospitals Board following wage negotiations, along with $2.4 million for Public Service Superannuation Fund overhead costs, $1 million for mental health support for Government Employees Health Insurance clients and $1 million for additional police officers.
Capital investments included $18.5 million for the Bermuda Hospitals Board, $8.9 million for affordable housing through the Bermuda Housing Corporation, $8.6 million for two new fast ferries, $8.4 million for roadworks and $6.4 million to stabilize the Tynes Bay Waste-to-Energy Facility.
Burt said the stronger fiscal position would allow the government to provide further tax relief to workers and families.
He said that when the House returns in November, he will provide an update on the government's financial performance for the current fiscal year and announce the next phase of tax reductions and relief.
However, Burt's announcement comes as he prepares to leave the finance portfolio.
In closing his statement, Burt described the fiscal improvement as part of the legacy he will leave for the next finance minister.
“So, now, as I prepare to step down, this is the progress that I leave to the next Minister of Finance,” he said.
Burt contrasted the current position with the finances his government inherited in 2017, when Bermuda was running a projected annual deficit of $135 million and had net debt of $2.4 billion.
His government subsequently dealt with the collapse of the Morgan's Point development, including a $165 million guarantee issued by the previous One Bermuda Alliance government. Bermuda borrowed $200 million and increased its debt ceiling to meet the obligation.
The island then faced the economic fallout from the COVID-19 pandemic, the war in Ukraine, global supply-chain disruptions, high inflation and rising interest rates.
Burt said the government's Economic Recovery Plan helped return Bermuda to economic growth, while unemployment has fallen to its lowest level in more than 50 years.
His administration has also introduced multiple rounds of tax and economic relief, including payroll tax reductions, a 10% cut in private car licensing fees, a $15 million relief package for working families and a 60% reduction in energy taxes.
The government has also frozen fuel pump prices at March 2026 levels to shield consumers from higher global fuel costs.
The preliminary figures remain subject to audit. The Office of the Auditor General is reviewing the government's Consolidated Fund Financial Statements for the year ended March 31, 2026. The completed audited statements will be tabled in both Houses of the Legislature.
Burt said the government's fiscal position had changed substantially during his tenure.
“Not record deficits, not an economy in decline, but 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,” he said.
