Finance Minister Paula Cox has refuted allegations Government has had to take out a loan of around $150 million to pay for election pledges.

However Minister Cox has refused to give details of whether Government needed to borrow large sums as it gears up to deliver on campaign promises in this month's Budget.

Yesterday the Mid-Ocean News reported the huge loan was needed after the Progressive Labour Party pledged a raft of social initiatives including free day care and Bermuda College education for Bermudians and free public transport as well as introduce better health coverage for seniors.

Ms Cox told The Royal Gazette: "Typically around this time of year, as the tabling of the Budget draws nearer we'd expect there to be speculation from various areas of the community regarding the upcoming Budget.

"The public should be advised that the long established tradition is that Budget Day is when the Government sets out its fiscal plans for the upcoming year. That tradition will not be deviated from on this occasion."

She added speculation had reached fever pitch about the 2008-09 Budget statement.

"On one hand I welcome such interest, as it serves to heighten the excitement for Budget Day, proving that prudent management of the Country's finances is important," said Ms Cox.

"However, today's reports are not accurate and members of the public as a well as members of the media will be properly informed about the Country's 2008-09 Budget on February 15, 2008 as is the norm."