v2.05>e1>By Ruth O'Kelly-LynchFive months into the fiscal year Bermuda's Government has seen a $14.9 million drop in revenues, compared to projections.Yesterday, the Minister of Finance revealed that revenues for the first five months of the fiscal year were down 3.7 percent compared to what they had projected in the 2009/2010 Budget.This drop in projected revenues is on top of Government collecting $32 million less in revenues in 2008/2009. This was three percent short of projected revenues.The figures were first revealed earlier in the week when Minister Paula Cox discussed the outlook of the economy with members of the Bermuda Public Services Union (BPSU).Yesterday, when asked about the meeting, Minister Cox said: "BPSU members were advised that in the last fiscal year i.e. April 1st, 2008 to March 31st, 2009, revenues were below budget by about three percent which is approximately $32 million. "Further to the above it should be noted, that in the National Budget Statement for 2009-2010 presented to the House of Assembly in February 2009, the Government stated that the economic slowdown could have a negative impact on the Government's total tax yield in 2009-2010, i.e. the current fiscal year."Members of the BPSU were advised that for the first five months of 2009/10, revenues were below the prorated Budget estimate by approximately 3.7 percent."@$:$>z$>s$>t$>c$>h$>y$>f$>@$p>*J*h"NCSchoolbook"*p(0,12,0,10.5,0,0,g)>*t(198,2,"1 ")>z9.5f"NewCenturySchlbk">She added: "Government went on record that it would address any event that posed a systemic threat to the stability or viability of a key economic sector.t(198,2,"1 ")>"As part of the economic strategy, none of the major taxes were increased and many tax concessions were extended to assist businesses in a challenging economic and financial climate." "According to the Finance Minister, the job market has begun to stabilise, but she added that lower levels of employment income have caused cutbacks in consumer spending."This has resulted in low retail sales which Minister Cox said are expected to remain weak in the near term. Thanks to a drop in oil prices inflation has steadily decreased in

2009, Ms Cox said.@$:$>z$>s$>t$>c$>h$>y$>f$>@$p>*J*h"NCSchoolbook"*p(0,12,0,10.5,0,0,g)>*t(198,2,"1 ")>z9.5f"NewCenturySchlbk">Government revenue comes from sources such as customs duty, payroll tax, hotel occupancy tax and stamp duty.t(198,2,"1 ")>Minister Cox also said the Island could expect a lower Gross Domestic Project (GDP) the sum of all goods and services produced which is the most commonly used indicator of national income. *t(198,2,"1 ")>"On balance, GDP in 2009 is projected to decline in the region of 1.0 to 1.5 percent with the anticipation of a recovery in 2010 should there be an improvement in global economic and financial conditions," she said.t(198,2,"1 ")>Ms Cox also outlined some of the issues Bermuda will face in the coming year including the potential of a reduction in construction activity following the completion of major projects.t(198,2,"1 ")>$>z$>s$>t$>c$>h$>y$>f$>@$p>*J*h"NCSchoolbook"*p(0,12,0,10.5,0,0,g)>*t(198,2,"1 ")>z9.5f"NewCenturySchlbk">According to the Finance Minister, the job market has begun to stabilise, but she added that lower levels of employment income have caused cutbacks in consumer spending.As for the general outlook of the economy the Minister said Bermuda could expect to see:$>f"Wingdings">lf$> The continuation of slower growth in external and domestic sectors of Bermuda's economyf"Wingdings">lf$> Ongoing negative results for visitor arrivalsf"Wingdings">lf$> Slower growth of international businessf"Wingdings">lf$> Negative to moderate GDP growth over the next two to three yearsf"Wingdings">lf$> The weak global economic climate will continue to dampen leisure travel.Ms Cox also said it was unlikely the sector would employ additional people this year, however it will still be the main contributor to the Country's GDP.