Boosts for pensioners, a new cruise ship terminal and better bus services were the key elements of yesterday?s budget.

Seniors look to be the biggest winners with promises of pensions hikes, more cash for prescription drugs and additional doctors visits.

War veterans will have their monthly pensions doubled to $800 a month and will enjoy better medical and dental benefits while public sectors employees will be allowed to work beyond 65.

Although it could be the last budget before the election, Government resisted a spending package and instead limited capital projects.

Premier Ewart Brown?s Government intends to raise $884 million ? an increase of $78 million on the original 2006/07 estimate - of which $862 million will be spent on public services. The other $22 million will help pay off debts.

Total capital spending is set at $141 million. Some 72 percent is for projects already underway while one half of the $41 million of new capital spending will go on a second cruise ship pier at Dockyard to accommodate newer, larger ships to be ready by 2009.

Pembroke Rest Home will be renovated and restoration work will be done on public golf courses beginning with Port Royal.

It means Government?s combined current and capital account budget for 2007/08 is just over $1bn.

Finance Minister Paula Cox has even clawed back some of the cash which would have been spent on housing projects because Government has cash pledges from the private sector.

But the house building programme will continue with new initiatives including the delayed 100-unit Harbour View Village at Southside, the 38-unit Perimeter Lane scheme, the 54-unit Westcott Road plan at Southside, the 24-unit Ewing Street mixed use development and the 100-unit affordable housing complex at Ireland Island.

Work on the new Hamilton Police Station/Court building will begin in June 2007 while work on the runways at Bermuda airport will run through this year and next.

Ms Cox said Bermuda should see growth of 3-3.5 percent in 2007 with inflation at three percent if oil prices take their predicted track.

Payroll tax remains at 13.5 percent but will now be charged on the first $350,000 a person earns rather than the first $235,000 ? yielding up to $10 million more for the public purse.

Land tax remains unchanged but an array of company fees will go up by five percent and people will pay more tax when buying foreign currency from April 1.

And there were stern warnings to the business community over the lack of advancement of black Bermudians.

Ms Cox said: ?We have a reputation to protect and to safeguard and we will do so wherever it may lead. Some believe they can profiteer at our expense. Not so.?

Duty breaks will be given to tour boat operators while hotels will be levied payroll tax at a reduced rate of 7.75 percent for an additional two months of the year with concessions now running from November to March.

Bus and ferry fares remain unchanged and Government will expand its bus fleet by 25 buses as, from April 1, routes seven, eight, ten and eleven begin to run buses every 15 minutes from 6 a.m. to midnight in a bid to curb congestion and drunk driving.

Among the new buses will be five neighbourhood buses to feed into the main route with the first being assigned to St. David?s.

A sixth catamaran ferry will be bought and arrive by early Fall as cover for the existing fleet.

Premier Ewart Brown said the budget brought ?sound economic management face to face with the requirement to build a better Bermuda.?

Start up businesses in the North East Hamilton Economic Empowerment Zone will get a concessionary payroll tax rate of 4.75 percent in the first 12 months.

And $250,000 of seed capital has been given to a company formed by young entrepreneurs in that zone.

Ms Cox announced an increase of $20 million in education spending throughout 2007-08 as the Government aims to tackle the failing schools system.

Total Government revenue is estimated at $917 million in 2007-08, about seven percent higher than the revised revenue estimate of $856 million for 2006-2007.