Premier and Minister of Finance David Burt on February 20 delivered what will be his final Budget, themed “Responsible Choices…Lasting Benefits for Bermudians.”

Burt said the theme reflects the balance his government has sought to strike over the past nine years.

Bermuda’s real Gross Domestic Product is estimated to have increased between 2.5 per cent and 3 per cent in 2025.

“This growth reflects solid performance in the International Business sector and further recovery in Tourism, supported by strong job growth, rising employment income, consumer spending, and foreign currency earnings,” Burt said.

Revenue tops $2bn for first time

For fiscal 2026-2027, the Government is projecting revenue of BD$2,027,200,000 (BD$1=US$1)— the first time in Bermuda’s history that revenue is expected to exceed the BD$2bn mark.

Corporate Income Tax is projected to generate BD$753.2 million, Payroll Tax BD$634.9 million and Customs BD$218.5 million, accounting for the majority of revenue.

Debt reduction plan

The Government plans to use Corporate Income Tax receipts to pay off a $605m government bond due in January 2027.

“It would be irresponsible to use volatile corporate income tax receipts to fund the everyday costs of running government.

“This revenue should not be treated as permanent money for recurring spending.

“Instead, this Government will use it to reduce debt, build reserves and make targeted investments in infrastructure, permanently strengthening public services,” Burt said.

He said the bond repayment would reduce gross debt from $3.29bn to $2.69bn.

“More importantly, it moves Bermuda onto a clear path to eliminate net debt within a decade. By 2028/29, the end of this three-year Medium-Term Expenditure Framework, The Government projects that Bermuda’s net debt to GDP ratio will fall to just 19 per cent, far below the 50 per cent limit put in place by the Fiscal Responsibility Panel,” he added.

Health receives largest allocation

The Ministry of Health received the largest allocation at $302.5 million, an increase of $57 million or 23 per cent over the previous year.

Burt said the ministry will expand community care, advance Universal Health Coverage and modernise the health system. Projects include rebuilding Lefroy House with increased bed capacity, advancing the Sylvia Richardson Care Facility expansion, establishing a 30-bed unit to improve patient flow and ease Emergency Department pressure, refurbishing the Hamilton Health Centre, St George’s Clinic and Somerset Clinic, implementing modern electronic medical records and expanding low-acuity care capacity.

“Advancing Universal Health Coverage remains central and by October 2026, all local residents will have access to health benefits. This work includes finalizing the core benefits package with includes regulation of copays for those benefits, and continuing subsidies for HIP and FutureCare. The Ministry will also advance workforce development through extended nursing scholarships,” Burt said.

National Security funding increase

The Ministry of National Security was allocated $137m, an increase of $9m or 7 per cent.

Funding will cover salaries and allow the Bermuda Police Service, Customs Department and Bermuda Fire and Rescue Service to fill critical vacancies. Additional support will go to the Bermuda National Drug Control’s Adolescent Substance Abuse Treatment programme aimed at addressing addiction treatment gaps for those aged 10 to 18.

Lower electricity costs and duty cuts

The Government will eliminate the final 4 cents per litre of customs duty on fuel for electricity generation, a move Burt said will save the average household $375 annually.

Duty rates will also be reduced or eliminated on a range of essential goods, including hygiene and cleaning products, infant care items, dairy products, bakery goods, grains, selected meats and fresh produce as part of efforts to ease cost of living pressures.

Capital expenditure

Capital expenditure for 2026-2027 is estimated at $182m, an increase of $32.2m or 21 per cent over the original 2025-2026 estimate. It represents the largest planned capital programme since 2008-2009.

The Budget includes $9.4m for the Swing Bridge and $8.8m for expansion of the Tynes Bay Waste-to-Energy facility.

“The Government has been forced to stretch the life of critical assets because the finances simply did not allow us to do what needed to be done. That approach comes with a cost, and eventually that cost shows up in breakdowns, delays, and risks to public safety. With our stronger fiscal position, we are now better placed to invest for the future while being more proactive on maintaining existing assets,” Burt said.