The government stewardship of the public purse shows good management by international standards, as shown by the deficit figures for 2023-24 keeping steady in spite of “some in-year pressures”, the fiscal responsibility panel stated.

However, the three-person group warned that while a balanced budget was a commitment for 2024-25, targets for the previous two fiscal years had been met only by “shifting some expenditures off-budget”, which it called “regrettable”.

Its 2024 report said that the island’s “overall fiscal position is somewhat less favourable than presented by the Government”, adding: “Bermuda’s net debt is still rising.”

The panel’s tenth annual report reviewed the island’s economic recovery and fiscal trajectory, noting a strengthening in the past year driven by international business — adding that growth had been “broad-based with accommodation and food services growing particularly rapidly”.

The upcoming corporate income tax was highlighted as the island’s “most pressing” issue, with the panel calling for its administration to be fast-tracked.

The Government said it welcomed the recognition of its commitment to “remaining within its fiscal guardrails and achieving a balanced budget in the current fiscal year”.

The panel also highlighted that the island’s inflation rate “has tended to be lower than that of its trading partners, despite high costs due to its remote island location, at least in part due to government measures to alleviate cost of living pressures”.

It noted cuts in duties on staple goods, with “the sugar tax reduced, fuel prices frozen and vehicle licensing fees reduced” and the standard premium rate of health insurance frozen for the third successive year.

The Government acknowledged the panel’s view on its “extraordinary measures” on health insurance rates via recourse to the Sinking Fund — adding that the Ministry of Finance saw it as “an appropriate step” in light of cost of living pressures.

The statement added: “The Government remains committed to using improved fiscal performance to ease the cost of living and doing business in Bermuda.”

It said the panel recommended that CIT revenues be “used responsibly, prioritising debt repayment, investments in capital projects and building reserves to ensure fiscal sustainability”, adding that the Government shared its views.

David Burt, the Premier, said: “The panel’s report reflects the success of our economic recovery efforts and prudent fiscal management.

“We remain focused on delivering tangible benefits to the people of Bermuda through continued relief, enhanced infrastructure, and targeted reforms.”