Premier David Burt, the Minister of Finance provided an update on the Government’s finances in his 2026/27 Mid-Year Review of the budget
Rising Corporate Income Tax revenue has reached $800 million, Premier and Finance Minister David revealed this morning.
He told the House that total Government revenue is at $2.09 billion, just under $70 million above original estimated budget.
In his 2026/27 Mid-Year review of government’s finance, the Premier cited a budget surplus of $520 million, which is $47.3 million above original estimates.
Premier Burt said, “Government’s latest assessment projects total revenue for fiscal year 2026/27 of $2.09 billion, approximately $61.9 million above the original budget estimate of $2.02 billion. The increase is principally driven by Corporate Income Tax receipts, projected at $800 million, $46.8 million above the original estimate, and Payroll Tax receipts of $650 million, $15 million above budget.”
This projection includes supplementary funds to support infrastructure repairs to the Bermuda College, renovation of the Compass House building, affordable housing investment, $12 million for the Bermuda Hospitals Board and $9.4 million for improvements to the Swing Bridge in St. George’s.
He added, “Current account expenditure is projected at $1.26 billion, approximately $14.5 million above the original estimate due to supplementary funding approved earlier this year, while capital expenditure remains on track at $182 million.
“Interest and Guarantee Management costs are projected at $124.8 million, in line with the original budget. The Government is therefore projecting a budget surplus of $520 million for 2026/27, $47.3 million above the original estimate of $472.7 million.”
Premier Burt said this guarantees a $605 million repayment towards Bermuda’s debt in January.
Plus additional payroll tax breaks for every worker effective January 1st were announced.
Premier Burt said, “the Government will reduce payroll taxes for every worker in Bermuda. These changes will reduce tax bills up to $1,560 a year, putting more money back into the pockets of hardworking Bermudians at a time when household budgets remain under pressure.”
He claimed the average worker will pay around $2,500 less per year in payroll tax.
Additional relief, he said, will also extend to restaurants, trade unions and licensed credit unions, land tax exemptions for local sports and social clubs.
Further, customs duty will be reduced to 50 per cent on the first $20,000 of value, reducing the import duties on
private cars by up to $12,500.
Funding towards specific projects within certain Ministries include:
• $2.8 million to the Ministry of Health to support the introduction of a mobile health clinic;
• $2.5 million to the Ministry of Housing and Municipalities for solar installations in Bermuda Housing Corporation homes;
• $1.95 million to the Ministry of Home Affairs to expand the balcony solar programme;
• $2.2 million to the Ministry of Youth, Social Development and Seniors to address critical social needs;
• $2 million to the Ministry of Education for increased funding to the Berkely Institute, upgrades to Cedarbridge Academy, the purchase of Sandy’s 360 to support the Signature School at Sandys Secondary;
• $2.6 million to the Ministry of National Security to strengthen public safety and law enforcement capabilities, improved detection equipment at the border for Customs, upgraded protective equipment for firefighters, and modernised facilities at the Royal Bermuda Regiment;
• $1.7 million to the Ministry of Justice to commence the implementation of recommendations arising from the Commission of Inquiry into Historic Land Losses
• $1.2 million to the Cabinet Office, including $500,000 to provide more capital development grants for community & sporting organisations, Public Service Bursaries, and recruitment;
• $1 million to the Ministry of Tourism & Transport, Culture & Sport, to provide additional funding to sporting bodies, support the purchase of equipment for community fields,
• $850,000 to the Ministry of Public Works and Environment for beautification projects of local parks and environmental protections
• $680,000 to the Ministry of Economy and Labour toexpand graduate trainee programmes, bursaries & scholarships, and hospitality training and BEDC grant funding
• $100,000 to the Ministry of Finance to support financial literacy programs
Premier Burt concluded, “The stronger financial position we have built over the last nine years has given us the capacity to do more, and the people of Bermuda should not have to wait to benefit from that progress.”
