The Government of Bermuda has tabled its 2026/27 Budget Statement, outlining record revenues, major debt repayment, payroll tax cuts, and expanded investment in healthcare and housing.
Key Highlights:
- Record Revenue: Total revenue is projected at $2.03 billion, the first time government revenue has exceeded $2 billion, driven largely by $753.2 million in Corporate Income Tax (CIT) receipts.
- Major Debt Reduction: The Government intends to fully repay $605 million in debt maturing in January 2027, reducing gross debt from $3.29 billion to $2.69 billion.
- Historic Surplus: A projected $472.7 million budget surplus for 2026/27.
- Payroll Tax Cuts: Employer payroll tax rates reduced across multiple categories, while employee tax bands are adjusted to deliver a net tax cut for all workers.
- Healthcare Investment: $87 million allocated to healthcare support, including funding for Bermuda Hospitals Board and Universal Health Coverage rollout.
- Affordable Housing Focus: Expansion of modern building methods, unlocking derelict properties, and strengthening Bermuda Housing Corporation delivery capacity.
- Cost of Living Relief: Further reductions in fuel duty for electricity generation, duty cuts on essential goods, and a 10% reduction in private car licensing fees.
The Budget theme, “Responsible Choices…Lasting Benefits for Bermudians,” reflects a focus on fiscal discipline, targeted relief, and long-term investment in national capacity.
