Bermuda’s new Budget has the “largest capital spending plan in a decade”, the finance minister said yesterday.

Curtis Dickinson said the financial blueprint for the year had “increased grants and contributions to invest in our communities”.

He said that capital development spending would be bumped up $16 million to $60.1 million, or 36.2 per cent.

Mr Dickinson added: “These monies will be used to fund necessary investments in building repairs, relocation of courts, school repairs and road repairs.

“Approximately $4.4 million of the increased spending will be funded from revenues raised from the new transportation infrastructure tax on cruise ship passengers, which is intended to be used to fund improvements in Bermuda’s tourism and transport infrastructure.”

The tax will be a modified version of the large ship infrastructure tax, which came into effect on April 1 last year.

Mr Dickinson said the tax would be “redefined” as the transportation infrastructure tax, and that the tax rate would be increased by $3 to $25 a passenger over the age of 2.

The new rate will take effect from May 1 for all cruise ships berthed in Dockyard between April 1 to October 31, regardless of the ship’s size or number of passengers.

Mr Dickinson said that the increase was expected to yield an estimated $4.4 million.

He added: “The majority of the revenue received from the infrastructure tax will be used to invest in new tourism and transport infrastructure.”

Mr Dickinson said that renovations to Sessions House and relocation of the courts would cost $3.2 million, other major building upgrades $3.1 million, school maintenance $3 million, and road works $2.8 million this financial year.

He added that an additional $1 million would be given to support improvements in St George and other “local communities” and a $2 million grant would be provided over two fiscal years for community club development.

George Dowling III, the Mayor of St George, said he was “extremely grateful”.

He added: “Once the St George’s portion of the $1 million has been allocated, we will put it to good use on some much needed infrastructure improvements.”

Mr Dickinson said that Governments were duty-bound to invest in infrastructure “to drive the momentum and growth of their economies”.

He added: “Financial constraints over the last decade have resulted in substantial reductions in, and in some cases the elimination of, funding for certain critical infrastructure investments.”

Mr Dickinson highlighted cash spent to meet reach thresholds imposed by the Financial Action Task Force, the European Union and Organisation for Economic Co-operation and Development, in areas that included anti-money laundering, terrorist financing and economic substance.

He added that cash had also needed to be spent on the guarantee for the stalled Caroline Bay development at Morgan’s Point.

Mr Dickinson said: “We expect to see a return on both these expenditures, but it is cold comfort to the people we represent where there are needs in the here and now that have been delayed as a result.”

The minister added: “The people should not have to wait any longer.”