On the eve of the presentation of a new Government budget, just-released figures for the fiscal year ending nearly three years ago show a government need in future years to raise taxes to pay for significant, unfunded expenses.

The latest financial statements from government indicate that Bermuda had a deficit for the year to March 31, 1994 of $88.6 million and long-term debt of more than $76,750,000 by March 31, 1994. But there were also unfunded pension liabilities of $164.6 million together with Government guarantees of $50.4 million.

It put Bermuda's national debt at around $380 million at the end of the 199 3/94 fiscal year.

But there were indications too, that Government was finally coming to grips with its financial management and will this year be able to have current financial information, after for a long time being years in arrears.

It would then be up to the Government Auditor Larry Dennis to bring up to date his audits of government accounts.

Accountant General Heather A. Jacobs-Matthews said, "The 1995 and 1996 Consolidated Fund Financial Statements will be presented this year, bringing us completely up to date.

"We expect to present the 1995 statements within two months and the 1996 figures two months later. This year, we have no choice but to be up to date, because the government has not been getting the information it needs on a timely basis.'' The new generally accepted accounting principles (GAAP) will have an effect on probably the 1995 government figures, and definitely the 1996 figures, meaning that the unfunded liabilities in the pension plans would no longer be carried as notes to the accounts, but will be directly factored into the body of the financial statements.

It will give a clearer picture, at first glance, of the total government debt and bring Bermuda in line with how other governments present their books.

Mrs. Jacobs-Matthews said, "As we bring more and more issues into the financial statement proper, rather than the notes, you will find a greater impact on the deficit or national debt. It's a way of showing the full nature of the accounts.

"Accounting principles are now requiring more disclosure in the body of the statements, rather than using the notes. But there are also increasingly, moves toward re-valuing the physical assets of a government. Instead of putting the value of government buildings at a nominal one dollar for example, their significant value, when brought onto the balance sheet might then substantially reduce the figure assessed as national debt.'' Meanwhile, a report from the Office of the Government Auditor to Parliament has indicated the net accrued pension benefit liability at March 31, 1994 was determined to be $154.5 million for the Public Service Superannuation Fund and $10.1 million for the Ministers and Members of the Legislature Pensions Fund.

GOVERNMENT GVT