Finance Minister Paula Cox today unveiled Government's Budget Statement, which contained a major focus on housing and improving the living conditions of the elderly.

She also said there would be no substantial increases in taxes.

Ms Cox was speaking as Government reported that revenue in the 2005-2006 Budget came in $48 million or six percent higher than originally estimated at $798 million. Expenditure was $14 million or two percent higher than estimated at $725 million, leaving a current account surplus of $87 million, up from the projected surplus of $2.7 million.

As a result, Government was able to cut its projected borrowing from $97.6 million to $64.6 million.

Capital expenditure for the year was $138.3 million, up $1.2 million on the original estimate.

For the coming year, Government projects current account expenditure will jump by 13 percent to $790.6 million while revenue will increase 4.5 percent to $835 million, leaving a current account surplus of $44 million.

Ms Cox said tax rates will not be increased on the Island's major taxes including Customs duty, payroll tax and land tax.

Some Government fees and licences will increase, most notable licences, but fares for buses and ferries will be frozen.

The major new spending in the Budget concerned housing, for which Government set aside $25 million for affordable housing construction in the current year, with an additional $42 million planned for 2007-8 as it moves to meet its promise of 330 new homes built in the next 30 months.

Government will also write off its $49 million loan to the Bermuda Housing Corporation by converting it into an investment, enabling the BHC to borrow more easily in the private lending market, it said.

Senior citizens will see the Government pension top rate of $1,061 per month rise by four percent and they will also receive a further increase in the prescription drug benefit to $1,150 per year.