House of Assembly yesterday. It seems just about everyone is getting more money this year and the Government will borrow an additional $50 million to ensure it.

The overall budget increased by $38.5 million -- or 7.2 percent -- which is more than twice the 3.46 percent increase in the 2000 budget.

This year the Government will spend just over $620 million dollars.

Can we afford it? Extensive infrastructure projects account for nearly $120 million of the projected spending. Infrastructure is an investment in the future and it would be difficult to argue that some of these major projects are unnecessary.

Demonstrated need has already been shown to justify the $33 million allocated to public schools, the $6.3 million for a new Magistrates' Court building and Hamilton Police Station and the $4 million for a residential care facility for at risk adolescents.

Between these projects and the $12.7 million increase to grants and contributions this year, it is clear that Government has no intention of backing off on its social commitments.

The Hospital alone received an additional $7.2 million in grants. And this year more money has been designated for social assistance, housing allowances, rental assistance, Bermuda College, foster fees, the NDC, teacher training, Government scholarships and pensions.

In Mr. Cox's own words, "the social focus of the Progressive Labour Party Government is demonstrably shown by the increased resources channelled into human service areas such as health, education, housing and social welfare''.

These commitments should make many of the PLP's core voters happy.

But can we afford them? It would be easy to feel comfortable with the new spending in the context of a growing economy -- and the economy grew again last year by 2.9 percent in terms of real GDP.

It would even be easy to feel comfortable in the context of a few new hits to the personal pocketbook -- sin taxes up on tobacco and alcohol, increases to vehicle licensing fees and higher fuel prices.

But some may become uneasy with the fact that after Government raised its debt ceiling to $250 million just last year, this Budget will put the total debt at $193 million -- more than three-quarters of the way to the ceiling.

Sadly the $12.7 million increase in grants and contributions to many worthy initiatives is outstripped by the $13.5 million Bermuda will pay in interest on its debt.

While remaining confident about future growth, Mr. Cox admits it will undoubtedly be slower this year given a foreseen slowdown in North American economies and he predicts little improvement in tourism.

Meanwhile struggling retailers were offered no relief in the Budget although the deteriorating state of the sector is visible on even a cursory walk about Hamilton shops.

International business remains the economy's strongest pillar and the payroll tax cap of $250,000 on an individual's salary which must be reported has been lowered to $225,000 in response to complaints from the industry.

Registration fees for new international businesses and a change in bank licences will continue to drop money into Bermuda.

But will it be enough? The Budget may not be "irresponsible'' as the Opposition has already branded it, but it is also not cautious.

And it is clearly the PLP Government's most distinctive and ambitious to date.