Premier says economy strong as he exits

Premier David Burt, who is preparing to step down as head of Bermuda’s government later this month, says he is leaving office with the British Overseas Territory’s economy on a strong footing.

“So, now, as I prepare to step down, this is the progress that I leave to the next minister of finance. 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,” Burt said.

Burt is due to step down as leader of the ruling Progressive Labour Party (PLP) and as premier this month, fulfilling a pledge he made in 2022 to leave office during his current term.

In a statement, he said that, although audit work on the government’s Consolidated Fund Financial Statements for the year ended March 31, 2026, is ongoing, preliminary analysis projects total revenue of US$1.57 billion for the 2025-26 fiscal year, 10 per cent above the original estimate of US$1.43 billion.

Burt attributed the improvement to continued economic growth, particularly higher-than-expected corporate income tax collections. These are projected at US$291 million, some US$103.5 million above the original estimate of US$187.5 million. Payroll tax receipts are projected at US$637 million, US$15 million above the original estimate of US$622 million.

Current-account expenditure, excluding interest payments, is expected to reach US$1.13 billion, 2.2 per cent above the original estimate of US$1.11 billion.

Capital expenditure is projected at US$142 million, about US$7.8 million below the original estimate of US$149.8 million. Interest and guarantee management costs are expected to total US$127.8 million, broadly in line with the budgeted US$127.5 million.

According to the preliminary analysis, the government is on track to post a budget surplus of US$169.6 million for 2025-26.

“That is US$126.3 million above the original budget estimate of US$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,” Burt said.

He said the spending included a US$30 million subsidy grant to the Bermuda Hospitals Board to support commitments arising from wage negotiations; US$2.4 million for Public Service Superannuation Fund overhead costs; US$1 million for mental-health support for Government Employees Health Insurance clients; and a further US$1 million to fund additional police officers.

Capital spending also supported key investments, including US$18.5 million in grants for the Bermuda Hospitals Board, US$8.9 million for the Bermuda Housing Corporation to expand affordable housing, and US$8.6 million for two new fast ferries.

Burt said stronger public finances give the government greater capacity to invest in the services and infrastructure on which Bermudians depend.

“This government has made those investments before, and we will continue to do so. But we know that many Bermudians are still struggling with the cost of food, housing, healthcare and other necessities. An improvement in the government’s finances must mean relief for those families and more of their hard-earned money staying in their pockets.”

Burt said his administration’s record over the past four years demonstrates that “we have reduced taxes, provided relief and returned more money to hardworking Bermudians”.

“As our finances continue to improve, this government will continue to share that success with the people we serve,” he said.

He added that, when parliament resumes in November, the government will provide a further update on its financial performance and outline the next phase of tax cuts and relief measures for Bermuda’s workers and families.