HAMILTON: The Bermuda government says the economy is growing and prospects for further growth look favourable after announcing revenues rose nearly five per cent in the first half of the fiscal year while public spending fell.
The Ministry of Finance released its half-year fiscal update on Tuesday and said it was broadly on track to meet targets set in February’s 2015/16 Budget.
During the April through September period, government ran a deficit of US$98.7 million, down from US$116.7 million for the corresponding period last year.
Revenues for the six months through September totalled US$464.2 million, an increase of US$20.7 million, or 4.7 per cent, from last year’s first half.
“It should be noted that the increase in revenue is due to a larger collection in customs duty, payroll tax and passenger tax, which are offset by lower receipts in all other revenues,” the ministry said in a statement.
“In general, total revenues are tracking in line with Budget estimates and the strength in payroll tax and customs duty receipts increases the chances of meeting the total revenue target of US$931 million for the current fiscal year.”
Spending is tracking slightly below budget estimates, the statement added.
Current expenditures, excluding debt service, were US$455.6 million for the six-month period, down by $3.8 million, or 0.8 per cent from the same period last year.
The current national debt stands at more than two billion US dollars, up from the US$1.4 billion debt the One Bermuda Alliance government inherited after defeating the Progressive Labour Party in the December 2012 general election.
Unemployment in this British Overseas Territory, which emerged from a six-year recession earlier this year, is seven per cent. Bermuda has a population of 65,000.
