The biggest problem with this years budget is that, even with the big tax increases, it still leaves the Bermuda Government operating with a substantial annual deficit ($145,000,000 deficit for this year’s operations, and $1,065,000,000 for the Consolidated Fund).
A reduction in Government spending is the only option, or we’ll be faced with even larger tax increases next year in addition to the growing mountain of debt payments.
The longer the shortfalls are allowed to continue, the less attractive our options to fix things will become, making the eventual fiscal adjustment more painful.
It, unfortunately, is that simple.
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