the financial year ended March 31, 1998, according to figures submitted by the Minister of Finance to the House of Assembly.

Revenues were up $40.07 million or 8.4 percent on the previous financial year, while expenses rose $26.13 million or 5.9 percent.

The most significant increases in Government revenue came from payroll tax and customs duty, an indication of higher employment and higher consumption in the economy. Non-Bermudian land acquisition tax brought in an extra $6.32 million over the previous year, rising to $13.55 million.

Significant increases in expenditures arose in education, the Ministry of Finance, and in health and social services.

Government ended up with an operating surplus of $49.6 million. Capital expenditures of $72.3 million meant Government had a deficit of $23.7 million.

Government long-term debt as of March 31 was $161 million.

On the revenue side of the balance book Customs duty brought in $7.74 million or 5.4 percent more than the 1996/97 year for a total $150.54 million (see graph). Customs duty made up 29 percent of total government revenue for the financial year.

Revenue from payroll tax rose $9.71 million or 7.6 percent to $137.83 million.

Payroll tax made up 26.6 percent of Government revenue, about the same as the previous year.

Land tax brought in $25.92 million, passenger tax $21.38 million, and stamp duty $21.21 million. Hotel occupancy tax brought in $13.06 million, about $200,000 less than the 1996/97 year.

Government also collected an additional $4.3 million from fees, permits and licences paid by international companies for a total of $32.33 million.

Vehicle licences and registrations brought in another $16.64 million, $1.34 million higher than the year before.

Meanwhile expenditures rose significantly in the Ministry of Education and Human Affairs. The ministry spent $8.7 million or 13.8 percent more in the 1997/98 financial year for a total of $71.77 million.

Expenditures at the Ministry of Health and Social Services rose $5.89 million or 6.2 percent to $100.36 million. The biggest gain was spending on hospitals which rose $3.44 million during the year to $56.16 million. Health spending made up 21.4 percent of Government expenditures.

The Ministry of Finance spent $8.03 million, or ten percent, more than the previous year for a total budget of $88.01. This was $14.19 million more than originally budgeted.