Budget 2024-25: Government commits to $10m grant increase for affordable housing
The Government will show its commitment to provide more affordable housing with a $10 million grant increase for the Bermuda Housing Corporation, The Royal Gazette has learnt.
David Burt will deliver the 2024-25 Budget at 10am and in his online presentation on the Pre-Budget Report, the Premier and Minister of Finance acknowledged that affordable housing was the top issue on voters’ minds.
Last night the Government indicated that the Premier will announce action to tackle the issue when it released the following excerpt from the Budget Statement in advance.
A government spokeswoman said: “As the country prepares for Budget day tomorrow, government will announce that it has increased capital funding to combat the issue of affordable housing by increasing the grant to the Bermuda Housing Corporation by $10 million on top of the $15 million that has already been committed.
“This will bring more rental units online faster, relieving the housing pressure for Bermudians.”
The Pre-Budget Report released in December said that capital account expenditures were projected to be $85 million, $11 million less than the original estimate.
It said: “The Government will continue to invest in affordable housing to ensure more Bermudians have access to affordable and quality living arrangements. This investment has already proven to release the financial pressure of many hard-working families and the Government is committed to expanding the initiative further.”
Balancing the Budget is the main goal for 2024 but this means the Government will have to juggle other priorities, such as investing in affordable housing, ageing infrastructure and tackling Bermuda’s cost of living.
In the Pre-Budget Report, Mr Burt committed to providing financing for repairs to the island’s roads, investing in government IT systems in the wake of a crippling cyberattack last September and “measures to make sure we improve the tax culture”.
Debt, once again, will loom large: Bermuda’s net debt stood at $3.1 billion towards the end of 2023, with annual interest payments of $129.9 million. That figure is projected to drop about $2.3 million in 2024-25.
The island’s ratings and reputation as a business jurisdiction ride on delivering the first balanced budget in more than 20 years and continuing to drive down debt and budget deficits.
For 2023-24, the deficit, in which spending outdoes revenues, stood at $44.4 million.
To contend with that deficit, Mr Burt’s Budget Statement will have to map out policies to grow the island’s economy and boost the Government’s coffers.
Improvements to government efficiencies will not come with cuts to the island’s civil service, as the Premier made clear in his online forum in January to discuss the Pre-Budget Report.
A hint of things to come lies in Mr Burt’s previous Budget Statement, after he made reference to a comprehensive “public value assessment” carried out across ministries.
Speaking on government reform, Mr Burt said that consultation would be aimed at bringing savings through what he termed “alternative methods of delivery” for some government services.
The Premier added: “The alternatives could include mergers, public-private partnerships and, potentially, the cessation of certain services.”
The Pre-Budget Report ruled out “major changes” to the tax system.
However, possible revenue-boosting moves include dropping the payroll tax breaks under the new-hire relief programme adopted in 2018 and a hike in boat licensing fees.
The Royal Gazette will provide live coverage of the budget on its website from 10am.
The budget will be available to livestream on www.parliament.bm by clicking on “listen live”.
It will also be available on the Government’s Facebook page.
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