Bermuda Budget 2024/25 Snapshot

Highlighting the pivotal role of the international business sector in driving growth, Premier Burt underscored its significance as the cornerstone of Bermuda’s economy noting international business job numbers were now the highest ever recorded, surpassing the previous peak before the recession in the late 2000s. The recent economic expansion of the international business sector is expected to culminate in the first budgeted surplus in two decades, as shown in the graph below, albeit a modest one of $210,000.

Notably, the budget proposal did not introduce any new taxes or increase existing taxes for any individual or business, instead focusing on growing revenues through economic expansion and diversification. Revenue indicators for the fiscal year 2023/24 are generally favorable compared to previous estimates, but increased expenditures result in a slight increase in deficit from the initial projections. The Premier reaffirmed Bermuda’s commitment to achieving fiscal equilibrium in 2024/25, aligning with the objectives set forth in the preceding year’s budget statement. Discussions also centered on developments such as the mixed-use site at Morgan’s Point, alongside upcoming projects like the revitalization of the Fairmont Southampton and the Brookfield building on Front Street.

Looking ahead, the implementation of Bermuda’s corporate income tax will be a focal point, as its management and the anticipated impacts, both foreseen and unforeseen, on future growth will be crucial determinants of the country’s economic trajectory.