An increase in tax revenue brought about by a buoyant economy will enable the Government to inject an additional $25 million into social welfare programmes in the next six months.

David Burt, the Premier and Minister of Finance, announced the cash bonanza in the House of Assembly on Friday.

Tax revenues in the first six months of the 2024-25 financial year were greater than calculated, enabling the Government to pump additional funds into key areas while still maintaining a balanced budget, the Premier told legislators.

Introducing the supplementary estimate order for consideration by MPs, Mr Burt said: “Bermuda’s economy continues to grow with an increase in tax revenue.

“These increased revenues enable the Government to reduce taxes, which we have done, but also to invest in further social support for the people of Bermuda while delivering a budget surplus.”

Mr Burt said that the $24.9 million windfall will be shared among eight ministries targeting “critical” social programmes while combating the rising cost of living.

He said that ministers had worked throughout the summer to prioritise areas where the extra money should be spent “to improve the lives of Bermudians”.

Mr Burt said that key target areas included public safety and enhanced support for mental health and community services, along with additional resources for the homeless, and training and apprenticeship programmes.

He acknowledged that more than one quarter of the funds — $7.3 million — will be spent on capital projects.

“You cannot deliver services without having the facilities to deliver those services,” he said.

The biggest beneficiary will be the Ministry of National Security, which has been granted an additional $5.4 million.

Included in those funds will be by costs related to the upgrading of CCTV surveillance systems, which are expected to be compete by the end of the year.

The Ministry of Social Development and Seniors has been given an additional $4.4 million to “target programmes that will help Bermuda’s social services and provide enhanced support”.

Its minister, Tinée Furbert, said: “This government is unwavering in its commitment to social investment, ensuring that Bermuda’s vulnerable population groups receive the financial programmes and services they require.”

The Ministry of Public Works will get a much needed financial boost to the tune of $3.46 million to fund 13 “enrichment endeavours”.

Lieutenant-Colonel David Burch, the Minister of Public Works, said: “We’re committed to addressing island infrastructure needs, and these funds will go some way in assisting with that mission.”

None of the extra funding has been set aside to top up the $5 million allowance already budgeted to address the poor condition of the island’s public roads.

However, $1 million has been earmarked to repair private roads, with constituency MPs being asked to submit to the ministry the names of roads needing attention.

According to Mr Burt, the Ministry of Finance will need an additional $4.5 million this fiscal year to fund the creation of a corporate income tax agency.

He justified the cost by explaining that the agency will have “the requisite powers and responsibilities to ensure that public confidence and international credibility are maintained in the regime”.

Mr Burt added: “Like our highly regarded financial services sector, it was deemed appropriate to establish an agency in compliance with international requirements.”

The Ministry of Health has been granted a $2.3 million top-up to its budget to tackle mental health problems in the community.

Walter Roban, standing in for absent health minister Kim Wilson, said: “Our goal is to create a Bermuda where mental health concerns are met with understanding, not stigma, and where everyone has access to the support they need.

“Mental health challenges can affect anyone anywhere.”

The Government will also spend a further $1.5 million on “digital transformation”, whereby administrative processes formerly carried out by paper get replaced by computer technology.

Crystal Caesar, the newly appointed Cabinet Office minister, said modernisation was “a key component” in her ministry’s strategic objectives that would improve “efficiency, transparency and accessibility of government services”.

Some of the extra cash will be spent on artificial intelligence technology training to “prepare the workforce for the digital future”.

In other training initiatives, the Ministry of Education will be given an additional $2.2 million, in part to fund programmes that assist young people from slipping into antisocial behaviour, while the Ministry of Economy and Labour’s income for the year has been boosted by $460,000 to fund apprenticeship programmes in trades such as plumbing and carpentry.