Vexed Bermoothes

The PLP is spinning like a top to pretend everyone loves the 2009 budget:

Government leaders today welcomed the resounding support of the 2009/2010 Budget from Bermuda’s key business organizations including the Association of Bermuda International Companies, the Bermuda Employers Council, the Bermuda International Business Association and the Chamber of Commerce.

This statement is simply not true as representatives of those entities have given a notably “mixed response” to the budget.  Yes, they were thrilled not to be taxed in the short term.

But in the longer term, they are ringing loud warning bells regarding the unexplained boost in Bermuda’s debt ceiling to a Dr. Evilish ONE BILLION DOLLARS, along with the raid on the sinking fund and postponement of interest payments.

In the years of budget surplus, the Bermuda Government learned to spend beyond our means.  Now that times are tough, they are still spending with little restraint – and using debt to finance it.

And not only that, they are proposing to disable some of the provisions in our laws that are designed to instill responsible use of debt (such as the sinking fund, which forces Government to save ahead for the repayment of principal on its debt).

This is not sustainable.  This is not responsible.  This is not good management.

Remember, this big splurge doesn’t even include the new hospital and causeway – which are being taken off the balance sheet using partnerships – but will still have large financial consequences in future years.  At their current rate of deficit spending, this will ultimately mean even more debt.

This has the potential to end very badly.