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 [...]
Entries Tagged as 'Budget'
Bermuda’s Biggest Problem
March 10th, 2010 · No Comments · Bermuda Politics
Tags:Budget
2010 Budget Debate
March 9th, 2010 · No Comments · Bermuda Politics
The “Road to Ruin” budget is an important one, as it deals in levels of Government expenditure and debt never seen before in Bermuda.
As in previous years, Government does not make it easy for the citizenry to watch what they are up to. They do not make the debate schedule publicly available on the [...]
Tags:Budget
Road to Ruin
March 5th, 2010 · No Comments · Economy
The UBP has given their Reply to the PLP’s Disasterous 2010 Budget.
It is scathing. Read it below the hop.
They focus on a few areas in particular:
“The Government is banking on a recovery taking place this year. We believe recovery this year is unlikely.
Imposing tax increases at this time is the wrong thing [...]
Tags:Budget
Essential Problem
February 4th, 2010 · 1 Comment · Economy
Bermuda has racked up $679,000,000 of public debt in just a few years. Now, FinMin Paula Cox says we need to borrow more.
Here’s the essential problem:
The Bermuda Government can’t properly account for the way it overspent its past budgets (which themselves have doubled in size).
And they want to borrow more … without the foggiest clue [...]
Tags:Budget
Pliable
February 3rd, 2010 · No Comments · Economy
The Minister of Finance published a controversial opinion last week that she should not be held accountable for the Bermuda Government runaway expenditure, deficits, and debt. She implies that she does not have the support of Cabinet to enforce financial discipline and hides behind “collective responsibility”. She said:
I can indicate support or objection. However [...]
Tags:Budget
Accumulated Deficit
February 2nd, 2010 · No Comments · Bermuda Politics
Bermudians are looking for reasons why the Bermuda Government is so horny to perform its hostile takeover of Bermuda’s municipal corporations.
Well here’s a candidate.
The Auditor General’s scary graph shows the rapid growth in Bermuda’s Accumulated Deficit over the past 6 years.
“The Accumulated Deficit represents the difference between the Consolidated Fund’s total liabilities (what it owes) [...]
Manoeuvrability
January 31st, 2010 · No Comments · Economy
The Budget will be delayed by 10 days to February 26 with Finance Minister Paula Cox today explaining that Government “wanted to give ourselves more manoeuvrability”.
Huh? Now that’s a strange explanation.
I read in this in four possible ways:
Everyone would still be hung over on the 16th from Ewart’s celeb-stalking Valentine’s Love Festival; or
The books [...]
Tags:Budget
Spending Like a Drunken Sailor
January 27th, 2010 · 2 Comments · Accountability, Bermuda Politics, Economy
The Bermuda Government under the PLP provides a constant circus of conflict, allegations, and political machinations.
That’s bad for Bermuda.
It’s good for the PLP though, because it keeps people focussed on the scandal-du-jour instead of seeing the big picture.
And that big picture is not pretty.
Larry Burchall points out that Bermuda’s Net Public Debt was $198,159,000 [...]
Tags:Budget
Leadership and Budgets
January 22nd, 2010 · No Comments · Accountability, Bermuda Politics
I am sadly amused by the public opinion polls in the Royal Gazette last week: the Premier’s rating is in the basement, while the Minister of Finance receives a solid positive rating from the public.
Sure, Paula Cox is dignified and well-liked … but let’s not confuse that with job performance. I suspect that her [...]
Tags:Budget
Debt per Person
April 14th, 2009 · Comments Off · Bermuda Politics
This letter to the editor by the author of “A Guide to the Economy of Bermuda” deserves some additional emphasis. In addition to the growing debt, Bermuda is racking up some serious deficits in its pension funds. These costs will eventually come home to roost with future generations of Bermudians. Note that his rough analysis [...]