Government grants and contributions up $12.7 million for the year.

Of the relatively few cuts in this area capital development grants were reduced by $2.9 million -- most of this was accounted for by completed projects or one-time only grants.

The largest real cut came from the Bermuda Land Development Company (BLDC) budget with a slash of $500,000.

BLDC chairman George Smith said he preferred not to comment on the funding reduction at this time. BLDC is still allocated $6 million in the new budget but it also took a cut of $250,000 last year, meaning its funds have shrunk $750,000 in the last two years.

The grant to the National Sports Centre was also reduced by $350,000 back to its 1999 level of $6.05 million.

Overall grants to the Hospital were $7.2 million but the amount allocated to the renal dialysis unit was cut $250,000.

A $55,000 grant allocated to the Woodshop programme last year has not been renewed although funding has been allocated in other areas should the programme be re-established or a similar one created.

In the context of across the board Ministerial and departmental increases, both Defence ($30,000) and the Registry General ($70,000) had a net reduction in operational costs.