The PLP has been in Government for 10 years. In that time, Bermuda’s government expenditures have more than doubled, culminating in this year’s $1.1 billion belt-buster budget.
And we have a mismatch: we are spending faster than we are earning. Bermuda’s national debt has gone from $198 million in 2006 (just two years ago) to an estimated $390 million (post sinking fund) this year.
Chart: Bermuda Government annual expenditures, 1999-2008.
The vast majority of the cash has gone on current spending rather than capital projects (a considerable number of which still wait in the wings).
Government staffing devours the budget, as headcount has increased by nearly 25% (or over 1,000 additional civil servants looking to run your life for you). Today, the Government apparently employs 5,600 people as well as a corps of hundreds of consultants.
Sustainable? Stewardship? Value for money?
Harbinger? // Mar 20, 2008 at 9:56 am
[...] This change is inevitable – given the prestige held by ACE and the insurers’ herd mentality, I am sure others will soon follow. It is not necessarily a gloomy deal for Bermuda. But it means that Bermuda better act intelligently with our international taxpayers and employers, because their options get wider every day. And somehow we have to pay for our Government that spends money like a drunk hooker. [...]
Fiscal Prudence // Sep 18, 2008 at 9:33 am
[...] truth is that Government expenditures have ballooned under the PLP – by nearly a half billion dollars a year – and I am not sure the Bermudian population will agree they have gotten value for money when faced [...]
Leadership and Budgets // Jan 22, 2010 at 9:02 am
[...] Minister Cox’s tenure of Finance Minister, it is my opinion that the Bermuda Government lost control of both its hiring and expenditures. The Government has received two qualified audit opinions. [...]