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Budget delays and promises

Douglas De Couto is the One Bermuda Alliance MP for Warwick North East (Constituency 25) and the Shadow Minister of Finance

Normally at this time of year, the political class and close observers would be analysing the annual Budget debate. This is when the Government delivers its taxing and spending plans to the legislature for scrutiny and challenge by the Opposition, and is an opportunity for the public to learn more about how the Government will spend the people’s money. Usually, this is all wrapped up and approved in time for the start of the financial year on April 1.

In early January when the election was called, there was some concern by the public that the election would delay the Budget process. However, the Government stated that it did not expect any. However, that promise is out the window with the new, recently announced schedule delaying things by about two months. Meanwhile, the Premier has shuffled the deck and the new ministers are busy moving around the deckchairs.

The Throne Speech was delivered just two short months before the election and the Government’s preview of the Budget, the Pre-Budget Report, was delivered only in mid-December. Given that, it is natural to think those plans were promises of what an ongoing Progressive Labour Party government would do after the election. But the Premier has thrown that all out the window.

Perhaps this was motivated by his government earning less than half of the popular vote, the first time in Bermuda’s modern political history?

David Burt and team ahead of the 2024-25 Budget (Photograph by Akil Simmons)

Speaking of promises, the Premier has pledged a new spirit of outreach and collaboration. So it was a surprise for the MPs in the One Bermuda Alliance to learn first of the new parliamentary and Budget dates by reading about them in the newspaper.

Can the Government do that? Sure.

Does it set a good basis for mutual respect? Not so much.

Of course, there are many groups in Bermuda that are already familiar with this kind of approach from David Burt and the PLP government.

Returning to the Budget, although it is now two months away, we look forward to seeing the Government’s revised funding plans. As they say, “put your money where your mouth is”.

The Pre-Budget Report pledged to keep all department budgets flat, except for a total increase of about 3 per cent earmarked to increase government workers’ pay. Given the agreement between the Government and the unions the day before the election, we will have to see if the 3 per cent is enough to cover what was promised — which we are still waiting to learn.

Absentee voting is another longstanding hot topic. The OBA prepared draft legislation and allocated funds for this in the 2016 and 2017 Budgets. This was then removed from Budgets by the PLP, so we will look to see if the Government actually backs its election-time pledges on this.

Obviously, funding for healthcare is critical, particularly for the hospital. My colleague, Robin Tucker, recently shared our thoughts on that and we hope to see adequate funding returned to the hospital.

For people working today, the stability of social insurance and government worker pensions remains a concern. The OBA pledged to reform these pensions so they can be relied upon by future retirees and we are anxious to see what the Government plans to do. We need the 2023 pensions actuarial reports to better understand the true state of the pensions — our guess, not very good — and are advised by the Government that we can expect to see these by the end of March.

Last but not least, we are carefully watching the Government’s handling of the corporate income tax. For example, how will the Organisation for Economic Co-operation and Development view our approach? Will we be penalised? And will businesses get the benefits they are looking for so Bermuda remains attractive?

These are the sorts of things we will be paying attention to, among many others, in the upcoming Throne Speech and Budget.

Whatever happens, you should rest assured that the One Bermuda Alliance will continue to advocate for all Bermudians and getting the best outcomes for our country.

• Douglas De Couto is the One Bermuda Alliance MP for Warwick North East (Constituency 25) and the Shadow Minister of Finance

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Published March 04, 2025 at 8:00 am (Updated March 04, 2025 at 7:17 am)

Budget delays and promises

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