February 20, 2026

Yes, and the Sergeant is distributing . . .
they are being distributed to the Members now.
[Pause]

BUDGET STATEMENT IN
SUPPORT OF THE ESTIMATES OF
REVENUE AND EXPENDITURE 2026/27

RESPONSIBLE CHOICES . . . LASTING BENEFITS
FOR BERMUDIANS
Hon. E. David Burt: Mr. Speaker, I rise to my feet to
give a statement from the Government in support of the
Estimates of Revenue and Expenditure for fiscal year
2026/27.

Introduction
Hon. E. David Burt: Mr. Speaker , nine years ago,
when this Government first took office, it did so at a time when Bermuda was facing fiscal challenges on many
fronts. Our national debt had doubled, our Island’s
credit rating had been downgraded, tourism had recorded the lowest air arrivals in decades, and Bermu-dian families, public servants, and our children were
carrying the heaviest burden in an unfair approach to “shared sacrifice.”
This Government was elected on a promise to
build a better, fairer Bermuda, and govern in a way that
put Bermudians first, even when the choices were diffi-cult. That , Mr. Speaker, remains the guiding principle
behind this year’s Budget. The theme of this Budget, “Responsible
Choices . . . Lasting Benefits for Bermudians ,” reflects
the balance this Government has tried to strike over the
past nine years making careful, disciplined financial decisions that safeguard stability, while ensuring that eco-nomic progress translates into investment in the future
and real improvements in the lives of our people.
Over this period, Bermuda has faced global
and local challenges that no government could have
predicted. We endured the most severe economic dis-ruption in modern Bermuda’s history during the COVID -
19 pandemic . At a time when our airport was closed,
we were forced to shelter in place while thousands of
Bermudians were suddenly uncertain about their liveli-hoods. Through it all, this Government chose to protect
jobs, continue public services, and support families and
businesses through unprecedented support measures. We made decisions that were not always easy, and not
always popular, but which kept Bermuda stable and positioned us for recovery.
Today, Mr. Speaker, Bermuda is stronger. Our
economy is stronger. Employment has grown. Investment has increased. International business continues
to expand. And our public finances are on a more sustainable footing than they were nine years ago. This
Government has achieved this while introducing Bermuda’s first minimum wage, increasing pensions for
seniors every year, expanding access to affordable
health care, investing in education, and delivering the
largest programme of affordable housing development
in a generation.
But, Mr. Speaker, this Government is also honest about the fact that many Bermudians are still feeling
the pressures of the cost of living and housing affordability. Progress at the macro level does not always feel
like progress at the kitchen table. And responsible Government means recognising that reality, not ignoring it.
Mr. Speaker , this year’s Budget is shaped by a
new and significant opportunity for Bermuda. Ber-muda’s new corporate income tax allows our Island to
benefit directly from the profits generated by international companies operating here. This new revenue
gives us the ability to make choices that previous governments simply did not have available to them. And
we have chosen to use this moment responsibly.

Hear, hear.
Hon. E. David Burt: This Budget delivers the largest
reduction in national debt in Bermuda’s history .
1850 20 February 2026 Official Hansard Report

Bermuda House of Assembly [Desk thumping]

Hon. E. David Burt: It cuts payroll taxes for all workers
in Bermuda, while also making major investments in capital projects and social programmes, including
housing, health care, and education.

[Desk thumping]
Hon. E. David Burt: In doing so, this Government is
sending a clear message: This is the time to build on
the strong foundations we have laid, using additional
funds responsibly to support the people of Bermuda, whilst also reducing our debt so that future generations
are not burdened.
Mr. Speaker , this Budget is also a personal
milestone for me, as it will be my final one as Premier
and Minister of Finance. When I entered public life, I did
so with a deep sense of responsibility to serve this
country and to help build a fairer, stronger Bermuda. Over the past nine years I have seen first -hand how
difficult, complex, and demanding this work can be.
However, I have also seen what is possible when people come together with a shared commitment to progress.
I am proud of what this Government has
achieved, not because every problem has been solved,
but because Bermuda today is more stable, more resilient, and better positioned for the future than when this
Government took office.

Economic Review
Hon. E. David Burt: Mr. Speaker , Bermuda does not
operate in isolation. As a small open economy driven
by international business shifts in the world economy are felt here at home. I will, as is customary, Mr. Speaker, devote the opening of my address today to
the review of global and local economic conditions. The global economy first, Mr. Speaker.

Global Economy
Hon. E. David Burt: Mr. Speaker , in 2025, the global
economy continued to face a range of challenges. Ongoing uncertainty , surrounding trade policies, periods
of volatility in energy and commodity markets, and the
lingering effects of earlier monetary tightening, all con-tinued to weigh on global economic growth.
The OECD estimates that global growth is projected to slow from 3.2 per cent in 2025 to 2.9 per cent
in 2026, before picking back up to 3.1 per cent in 2027.
The International Monetary Fund (IMF) points to a similar overall outlook, estimating global growth at 3.3 per
cent in both 2025 and 2026, before easing slightly to
3.2 per cent in 2027.
Growth in advanced economies is expected to
remain broadly stable at 1.7 per cent from 2025
through 2027. The United States’ growth is forecasted to increase from 2.1 per cent in this current year to
2.4 per cent in 2026, before easing to 2.0 per cent in
2027. Growth in emerging markets and developing
economies is projected to moderately soften from
4.4 per cent in 2025 to 4.2 per cent in 2026, and 4.1 per
cent in 2027.
Mr. Speaker , although still elevated, global inflation is expected to continue its downward trajectory,
falling from 4.1 per cent in 2025 to 3.8 per cent in 2026,
and a further 3.4 per cent in 2027. This decline reflects
lower energy and commodity price pressures, improving supply chain conditions, and gradually easing labour market tightness.
Despite this progress, Mr. Speaker , downside
risks have increased. The OECD identifies rising trade fragmentation as a key concern. Expanded tariff
measures from the United States, along with retaliatory
actions by trading partners, have heightened uncertainty in global trade. Such measures raise the cost of
imported goods and production inputs, disrupt established supply chains, and dampen business confidence
and investment.
In summary, Mr. Speaker , the global economic
environment is characterised by slower but continued
growth, easing yet still elevated inflation, and heightened trade policy uncertainty. While a severe downturn
is not the central forecast, the balance of risks remains
tilted to the downside. Continued progress on inflation,
prudent policy management, and stable trade linkages
will be essential in sustaining global economic stability.

Local Economy

Hon. E. David Burt: Mr. Speaker , allow me to now turn
my attention to the domestic economy.
Bermuda’s real Gross Domestic Product
[GDP ], the primary indicator of economic growth, is estimated to have increased between 2.5 per cent to
3.0 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 for-eign currency earnings.
Mr. Speaker , the International Business sector
continues to be the primary driver of economic growth.
During the first three quarters of 2025, a total of 398
new international companies and partnerships were
registered in Bermuda. For the year, the sector employed 5,112 persons, representing an increase of 72
jobs, or 1.4 per cent , when compared to the previous
year. Total employment income within the sector rose by a further 5.5 per cent , or $76.9 million, contributing
significantly to overall growth in national income.
Mr. Speaker , Bermuda’s Tourism sector
demonstrated resilience amid a challenging environ-ment in 2025. Although air and cruise visitor arrivals
declined, total visitor spending across air and cruise increased by 3.5 per cent to $550 million. Hotel performance remained resilient, and superyacht tourism was


Bermuda House of Assembly the standout performer, with arrivals rising 50 per cent
and associated visitor spending increasing 64 per cent
year on year. Tourism activity also continued to support
employment growth in the accommodation and food
services sector, with 64 additional jobs representing a
1.7 per cent increase.
Mr. Speaker , I am pleased to report that employment throughout our economy has strengthened
during 2025. The total number of filled positions has
risen by 279 posts, representing a 0.8 per cent increase, which marks the fourth successive year of employment expansion. Growth has been concentrated
predominantly in the public administration, international
business, and a ccommodation and f ood services, with
these three sectors collectively accounting for over half of all new positions created. Conversely, the most significant contractions were registered in f inancial and insurance activities, information and c ommunication, and
real estate activities.
Unemployment has continued its downward
trajectory, standing at 1.4 per cent in November 2024,
well below the 2.8 per cent recorded a year earlier , representing the lowest rate since 1970.

Hon. Zane J. S. De Silva: Uh-oh.

Hon. E. David Burt: Among Bermudians, the unemployment rate also fell from 3.3 per cent to 1.3 per cent .
Whilst this development is certainly welcome, Mr .
Speaker, the Government is mindful that a constrained
labour market may generate inflationary wage pressures across the broader economy. It is therefore im-perative that g overnment policy facilitates an adequate
labour supply to underpin sustained economic expansion.
During the first nine months of 2025, employment income became a principal driver of consumer activity, expand ing by 5.8 per cent or $196.1 million to
$3.57 billion. Aggregate Retail sector turnover stood at $948 million over the first three quarters [of 2025 ], reflecting a 1.5 per cent increase compared with the corresponding period a year earlier . Additionally, personal
consumer spending rose by 2.4 per cent to total $4billion throughout 2024.
Moving on to the Construction sector, Mr.
Speaker, although the value of new projects started fell
by 60 per cent to $45.1 million over the first nine
months, the total estimated value of construction activity undertaken grew from $70 million to $112.8 million,
an increase of 60 per cent, or $42.7 million. This expansion was driven by the office, retail and w arehousing category, which increased by $20 million.
Mr. Speaker , Bermuda’s annual inflation rate
was 2.2 per cent in September 2025, remaining below
major economies such as the United States , the United
Kingdom and Canada. This increase reflected notable
rises in h ealth and p ersonal care (up 3.9 per cent ) and
rent (up 1.9 per cent ). Bermuda’s external position remains strong,
Mr. Speaker . In the first nine months of 2025, the current account surplus widened to $1.52 billion, up from $1.33 billion over the same period in 2024, thus representing 21.5 per cent of GDP. This expansion reflects
a solid performance in financial services exports, employee compensation, and investment incomes. Foreign currency earnings from the I nternational Business
sector reached $2.29 billion, a 4.5 per cent increase
year over year while tourism foreign exchange earnings
rose to $436.7 million, up 1.4 per cent .
In 2024, Bermuda recorded real GDP growth
of 1.9 per cent , marking the fourth consecutive year of
growth. This expansion was supported by continued
strength in i nternational business, our largest sector,
which accounts for 29.3 per cent of GDP and contributed an additional $48.5 million in value added. Growth was also evident against key domestic industries: i nformation and communication services increased by
16.4 per cent , human health and social work activities
rose by 6.3 per cent , and c onstruction and q uarrying
expanded by 8.8 per cent , reflecting ongoing development across the I sland. Although growth moderated
from 2023, this is consistent with the economy transitioning from the rebound phase of recovery to steadier,
sustainable expansion.
Mr. Speaker , while the economy has demonstrated resilience, the challenges emerging require our
attention. The tariff escalations witnessed through 2025
are gradually influencing prices and business decisions across major economies. For Bermuda, these cannot
be distant concerns, Mr. Speaker, because our economy is closely connected to global markets and these
developments have real implications for us here at
home.
Navigating this period will require discipline.
Bermuda must prioritise fiscal prudence, advance eco-nomic diversification, and ensure that our regulatory
frameworks which attract so many companies to Bermuda remain competitive. The global environment is
shifting rapidly and our policy responses , Mr. Speaker,
must be strategic. Through disciplined fiscal management th e Government can mitigate external shocks and
position Bermuda to emerge from this period of uncertainty on an even more solid footing than we are on today.
Mr. Speaker, I will now move on to the Economic Development Strategy.

Economic Development Strategy

Hon. E. David Burt: Mr. Speaker, Bermuda’s Economic Development Strategy was endorsed by this
Honourable House several years ago, and today the
sustained implementation of that strategy is evident
both in the data and in the lived experience of our economy. Unemployment is at hi storic lows; labour
demand remains strong across multiple sectors and
business activity has expanded.
1852 20 February 2026 Official Hansard Report

Bermuda House of Assembly Entrepreneurship remains a central pillar of
this strategy. Through expanded access to capital,
structured advisory support, and coordinated programmes delivered through the Bermuda Economic
Development Corporation and its partners, t he Government is strengthening the pipeline of Bermudianowned enterprises with hundreds of entrepreneurs receiving direct support.
Mr. Speaker, youth employment has also been
a priority. In the past year alone, hundreds of young
Bermudians have been supported through structured training, apprenticeships, internships, and direct job
placement initiatives. These placements span constructio n, hospitality, professional services, and
emerging sectors. And as you can see, Mr. Speaker,
we have seen a significant drop in youth unemployment as well.
Diversification continues to strengthen the
base of the economy. While international business re-mains a core pillar, growth is visible in residential development, construction activity, small business formation, and sector expansion beyond traditional areas.
Planning approvals and private sector investment levels demonstrate continued business confidence.
Mr. Speaker , growth brings pressure, labour
shortages , housing demand [and] infrastructure strain.
But these pressures are signs of expansion. They confirm that the strategy is working. That is why the housing investments outlined in this Budget are directly connected to economic policy. When you grow you must
build capacity. When you attract investment, you must
ensure the infrastructure and workforce are ready.

Labour Market Reforms

Hon. E. David Burt: Mr. Speaker , economic growth
does not sustain itself. It requires steady management
and policies that are sound. One of the clearest signs
that our economic policies are working is what we see in the labour market with unemployment at record lows.
But, Mr. Speaker , we also have to be honest about
what comes with success. A growing economy creates
more demand for jobs . And one constraint on our continued growth is a lack of available labour.
If we are to keep this economic momentum going, Bermuda must take a balanced approach to the labour market, one that protects Bermudian workers while ensuring that businesses can access the talent
needed to grow and invest. To address this, the Minis-try of Economy and Labour will further modernise our
work permit processes by reviewing and making adjustment to closed and restricted job categories to assist
with closing the gap between the supply and demand
for labour.

2024/25 Fiscal Performance

Hon. E. David Burt: Mr. Speaker , I am sure that many
are anxious to hear this Government’s plans for the upcoming fiscal year. But I must first update this Honourable House and the people of Bermuda on the audited financial results of the prior year. The audited financial statements for the fiscal year 2024/25, which
ended on 31 March 2025, were tabled in this House
earlier today. I am pleased to report that these accounts
received an unqualified audit opinion from the Auditor
General, removing the previous qualification regarding
provisions for asbestos abatement.
The removal of that qualification, which arose
due to a change in accounting standards, is welcomed
news, and I want to take this opportunity to commend the teams in the Ministry of Public Works and Environment, and the Accountant General’s office, for their
work in getting the qualification removed.

Fiscal Year 2024/25 Revenue

Hon. E. David Burt: Mr. Speaker , total revenue for fiscal year 2024/25 reached $1.27 billion. This was $40
million , or 3.3 per cent , higher than the original estimate
of $1.23 billion.
Payroll tax [ collections ] were the primary driver
of this growth, totalling $612.6 million. This represents
a $42.6 million , or 7.5 per cent , increase over the original estimate of $570 million. This performance was underpinned by continued job growth and rising salaries.
Customs duty receipts were recorded at $225
million, which was $9 million , or 3.8 per cent , below the
estimate of $234 million. However, Mr. Speaker, this
drop was a deliberate consequence of t he Government’s decision to implement a 60 per cent reduction in
taxes on fuel imported by BELCO to provide direct relief
to residents and businesses on their energy bills .
All other receipts totalled $432.4 million, performing broadly in line with expectations.

Fiscal Year 2024/25 Expenditure

Hon. E. David Burt: Mr. Speaker , the Government
maintained control over its spending while addressing critical social needs and delivering promised pay increases for public officers.
Current account expenditure for the year totalled $1.006 billion. While this was $14 million, or
1.4 per cent , above the initial estimate of $992 million,
it reflects our decision to allocate additional funds toward social spending and provide essential support to
the Bermuda Hospitals Board during the year.
Capital expenditure totalled $101.7 million,
which was $10.6 million below the original estimate of
$112.3 million. Despite being slightly under the budgeted amount, this represented the highest level of capital investment in the I sland’s infrastructure since
2010/11.
Debt service and guarantee management were
$129 million, which was approximately $1 million above
the original estimate. It is important to note, Mr.
Speaker, that this was $2 million less than the prior


Bermuda House of Assembly year, which wa s a direct result of this Government’s
$50 million debt repayment made in 2023.

Achieving the Surplus

Hon. E. David Burt: Mr. Speaker , while the Government originally projected a modest surplus of $210,000,
I am proud to confirm to this Honourable House and the
people of Bermuda, that Bermuda achieved a Consoli-dated Fund modified cash surplus of $29 million.

[Desk thumping]

Hon. E. David Burt: This surplus, Mr. Speaker, the first
achieved in 21 years, was delivered before a single dol-lar of c orporate income tax was collected.

Hon. Zane J. S. De Silva: That’s right.

[Desk thumping]

Hon. E. David Burt: It is proof that this Government
has successfully managed the Island’s finances while
simultaneously reducing the tax burden on workers to the lowest level in history.
When reviewing the results from fiscal year
2024/25, the independent Fiscal Responsibility Panel said, Mr. Speaker, and I quote: “Bermuda’s fiscal position is [now] stronger than at any time in two decades .”

Uh-oh!

[Desk thumping]

Hon. E. David Burt: On this , Mr. Speaker , the Government agrees . And now it is our job to build on this solid
foundation.

Fiscal Year 2025/26 Fiscal Performance

Hon. E. David Burt: Mr. Speaker , before turning to the
Estimates of Revenue and Expenditure for the coming
fiscal year, I want to update this Honourable House on
the Government’s financial performance for the current
year, fiscal year 2025/26, which will end on 31 March
2026. The most recent revised forecasts confirm that
the fiscal and economic strategy that this Government
has executed is delivering sound public finances while continuing to deliver on the commitments that we made
to the people of this country.

Fiscal Year 2025/26 Revenue

Hon. E. David Burt: Mr. Speaker , the latest revised
forecasts project total revenue for fiscal year 2025/26
to be $1.554 billion. This represents an increase of
$123 million, or 8.6 per cent , over our original budget
estimate of $1.431 billion. The most significant contributor to this increase
is actual receipts from the corporate income tax. Our
revised provision for receipts in fiscal year 2025/26 is
now $279 million—and that amount was transferred to
the Consolidated Fund pursuant to the Corporate In-come Tax Act and the Corporate Income Tax Refund
Regulations —representing an increase of $92 million,
or 48.8 per cent , over our original estimate of $187.5
millio n, Mr. Speaker .
Mr. Speaker , other revenue sources remain resilient. Excluding corporate income tax, revised revenue estimates have reached $1.275 billion, exceeding
the original estimate by $32 million, or 2.6 per cent .

Fiscal Year 2025/26 Current Expenditure

Hon. E. David Burt: Mr. Speaker , current account expenditure for the year, excluding debt service, is now
projected at $1.135 billion, an increase of $25 million
from the original estimate of $1.1[ 1] billion.
This increase is largely driven by our commitment to invest in health care delivery. The Government
increased the supplementary allocation to $86.25 mil-lion, which is $30 million higher than the original $56.25
million. This additional $30 million expenditure was
necessary to provide support to the Bermuda Hospitals
Board in meeting their obligations to their employees
following wage negotiations.
Despite these targeted investments, Mr.
Speaker, the baseline current account expenditure for
Ministry budgets has been maintained with the same
discipline that was recognised by the Fiscal Responsibility Panel. Baseline current account expenditure is
projected to come in at [$1.048] billion, a decrease of
$5 million, or 0.5 per cent , from the original estimate of
[$1.054] billion, meaning that outside of extraordinary
contributions, the Bermuda Hospitals Board and the
BHB, all other expenses have been managed below
budget.

Fiscal Year 2025/26 Capital Expenditure
Hon. E. David Burt: Mr. Speaker , for the current y ear,
capital investment was originally budgeted at $149.8
million. The revised estimate is now $138.1 million, $11
million below the original estimate.
But, Mr. Speaker , allow me to put that in to context. At [$138.1] million, this year’s capital spend is
$36.4 million higher than the year before, and this
means that t he Government is still investing and doing
more. And we have seen the progress that has been
made on roads, affordable housing, public transport,
modern equipment for staff, and better facilities for Ber-mudians.

Debt Service

Hon. E. David Burt: Mr. Speaker , debt service and
guarantee management costs for the year remain
1854 20 February 2026 Official Hansard Report

Bermuda House of Assembly steady at $127.5 million, in line with our original projections. Bermuda’s net debt remains on a downward trajectory as the Government continues to build our reserves for future repayments. It is also important to note that Bermuda’s debt interest/revenue ratio is now below 10 per cent . This was a major milestone published
in the first Fiscal Responsibility Panel report, and the
Government has now achieved this goal.

Record Budget Surplus
Hon. E. David Burt: Mr. Speaker, it is with pride that I
share that the projected Consolidated Fund modified
cash surplus for the fiscal year ending March 2026 is
now estimated at $153.1 million. This represents a significant increase over the original estimate of $43.3 million.
While this result has been supported by the
windfall in c orporate income tax receipts, it also reflects
our continued focus on maintaining a stable financial position. The Government has managed its spending
to ensure that it capitalises on these increased revenues to strengthen the I sland’s finances.
In a demonstration of our fiscal discipline, Mr.
Speaker, the $110 million achieved over the original estimate will be set aside and specifically used to repay
debt due in 2027.

[Inaudible interjections ]

Setting the Stage for the Next Budget

Hon. E. David Burt: Mr. Speaker , they are getting excited over there.
You can wait. It is a long Statement. Strap in.
Mr. Speaker, as we present the estimates for
fiscal year 2026/27, it is necessary to pause and reflect
on the journey this Government has taken over the last
nine years. Since 2017, Mr. Speaker, our mandate has
been clear: To put Bermuda on a path of sustainable
growth and social equity. This Government has stayed
the course through global crises and domestic challenges, always with the aim of ensuring that we are masters of our own house.
This Budget is a defining moment. It is the first
Budget fully shaped by the successful implementation
of the c orporate income tax. While some may see this
as a reason to permanently expand the size and scope
of government services, this Government also sees it as an opportunity for debt repayment and strategic investment for the future.

Tax Reform Commission

Hon. E. David Burt: Mr. Speaker, as we are talking
about the basis, let us speak about the Tax Reform
Commission. I must express my sincere gratitude to the
members of the Tax Reform Commission for their comprehensive report published last August. The Commission engaged a cross section of our community, meeting with over 500 individuals and more than
30 stakeholder groups.
Mr. Speaker , the Commission’s report is clear
in its intent. It sets out a pathway to modernise Ber-muda’s tax system in the context of corporate income
tax, with a focus on reducing the cost of living and the
cost of doing business, supporting job creation and growth, improving equity, and maintaining healthy public finances. The Government congratulates the Com-mission for producing a report that is both practical and
ambitious, and accepts the recommendations put forward, recognising that the sequencing an d detailed design of implementation may be guided by prevailing fiscal and economic conditions.
This Budget reflects the direction and discipline
of that work. This Government is advancing the Commission’s core themes of fairness and relief, ensuring
that the transition to c orporate income tax delivers tangible benefit to Bermudian workers and local businesses. The Commission’s waterfall model has been a
great tool in guiding priorities and sequencing decisions, so that tax relief, investment, and reform are delivered in a way that is responsible, transparent, and focused, of course, Mr. Speaker, on real outcomes.
Mr. Speaker , the Commission has completed
its mandate, and th e Government will now carry the
work forward. The T ax Reform Commission report will
remain as a reference point as the Government continues to modernise Bermuda’s tax system. The report
also points us toward the future. It recommends that
Bermuda should examine, in a careful and measured
way, the merits of a low rate, broad- based income tax
system, designed to maintain Bermuda’s competitiveness while making our tax system more progressive
and more transparent.
To support that work, the Ministry of Finance
will advance the Commission’s recommendations for
enhanced data collection on personal and business income so that any future decisions are informed by evidence.

Fiscal Responsibility Panel

Hon. E. David Burt: Mr. Speaker , the Fiscal Responsibility Panel’s 2025 Annual Assessment provides an
important independent review of Bermuda’s progress.
The Panel noted that our economy remains strong,
driven by the performance of international business
and an unemployment rate that has fallen to historic
lows. The Panel recognised the milestone achieved in the 2024/25 fiscal year, the first surplus in the Consolidated Fund in more than two decades.
The Panel commended t he Government for the
smooth implementation of the Corporate Income Tax
Agency, noting that the systems and staffing were established efficiently and that initial payments were received without incident. The Panel’s conclusion was


Bermuda House of Assembly clear: Bermuda’s fiscal position is stronger today than
it has been in 20 years.
Mr. Speaker , the Panel also made the point
that strong years must be used wisely. They recommended clear fiscal guardrails set in law to protect
transparency, support debt reduction, and strengthen
macroeconomic stability. The Government has listened, and it agrees. That is why this Budget puts those
guardrails in place, so we lock in the progress that has been made and protect Bermuda’s finances against
whatever may come next.

Fiscal Rules

Hon. E. David Burt: Mr. Speaker , to ensure that the
unique opportunity presented by the corporate income
tax is not lost on the short -term pressures of the day,
and in view of the recommendations of both the Tax
Reform Commission and the Fiscal Responsibility
Panel, this Government recognises the need to institutionalise a stronger framework of fiscal discipline. This
new framework is built on two rules, aligned with those
recommendations.
First, a rule for disciplined annual operations.
In plain terms, our day -to-day budget must remain in
balance or surplus, excluding net c orporate income tax
revenues, capital spending, and interest costs. This
rule ensures that the ongoing cost of running government is sustainable and not dependent on corporate income tax revenue or borrowing.
Second, a rule for the responsible use of corporate income tax revenues. Over a rolling three- year
period, at least 70 per cent of net c orporate income tax
revenues will be directed to paying debt interest, reducing net debt, or building net financial assets. This rule
ensures that a substantial majority of these new revenues are used to strengthen the country’s balance sheet and improve resilience for the future.
Mr. Speaker , what matters most is not only that
these rules exist, but that the government lives within
them. The Medium- Term Expenditure Framework presented in this Budget meets these fiscal rules, both the
operational balance rule and the c orporate income tax
allocation rule.
Mr. Speaker , one of the most important shifts
for Bermuda is that t he government now has the ability
to save. Now, because of stronger revenues and disci-plined spending control , we can reduce debt, build financial reserves, and begin to manage national assets
in a more deliberate way. That approach requires the use of dedicated funds.
First, a Stabilisation Fund will provide a financial cushion during periods of economic stress, with contributions made during stronger years and withdrawals used to smooth the impact of downturns. The
Tax Reform Commission recommended an annual
contribution of $100 million to this fund, and that contribution will commence in fiscal year 2027/28. Second, the Sinking Fund will continue to be
used to manage debt, reduce refinancing risk, and
meet sovereign liabilities in an orderly way. The Tax
Reform Commission recommended an annual contribution of $200 million to this fund and t hat contribution
will start in fiscal year 2027/28.
Third, a Sovereign Wealth Fund will be established to generate long- term returns and build national
wealth over time.
Mr. Speaker , the focus in the short to medium
term will be on the first two funds, and our medium- term
financial plan includes contributions to both. At the
same time, the Government will legislate for the governance arrangements and guardrails needed to manage all of these funds, aligned with global standards.

Corporate Income Tax

Hon. E. David Burt: Mr. Speaker , the successful implementation of the c orporate income tax marks a major change in Bermuda’s fiscal position. As I have outlined in our current year performance, c orporate income tax transfers to the Consolidated Fund for the
current fiscal year came in well above our estimates,
reaching $279 million. That is a strong result and reflects the success of international business and the
work that has gone into building and administering this
regime.
Most companies in scope report on a calendar
year basis, which means that receipts do not arrive
evenly across fiscal years. The $279 million recorded
in this current year includes only an initial portion of the
payments that are now coming in. For 2026/27, the
Government projects c orporate income tax revenue of
$753 million. That figure reflects the balance of pay-ments related to 2025 activity, adjusted for expected
tax credits once final returns are assessed later in
2026, and it also includes an initial portion of payments
expected for the 2026 calendar year.
Mr. Speaker , this level of revenue gives Bermuda options the Government has simply not had before. But we must be straight with the public about what
this is and what this is not. These receipts will not be
the same every year. Analysts have indicated that 2025
may represent the high point of a revenue cycle. As the
cycle continues and the tax credit framework matures,
we should expect gross c orporate income tax revenues
to moderate over time.
Mr. Speaker , it would be irresponsible to use
volatile corporate income tax receipts to fund the everyday running of government. This revenue should not
be treated as permanent money for recurring spending.
Instead, th e Government will use it to reduce debt, build
reserves, and make targeted investments in infrastructure and permanently strengthening public services.
Let us move on to debt, Mr. Speaker, because
I know some people like to talk about debt.

Hon. Zane J. S. De Silva: Yes, they do.
1856 20 February 2026 Official Hansard Report

Bermuda House of Assembly Bermuda’s Debt

Hon. E. David Burt: Mr. Speaker , for years there have
been those who speak about the national debt as though it is the only measure of good government. I ,
Mr. Speaker, do not share that view. But I do recognise
this: Debt must be managed. And when you can pay it
down without compromising your plan for the country, you act.
Because of the way this Government has implemented corporate income tax, and because of the
fiscal discipline we have maintained while in office over
time, we are now in a position to do something Bermuda has not been able to do for a long time: Repay a
significant portion of our debt.
In the Pre- Budget Report, t he Government projected that it would repay $500 million of the debt maturing in January 2027. But , Mr. Speaker , collections
and overall economic performance have come in
stronger than projected. So, I am pleased to inform and
confirm to this Honourable House today, Mr. Speaker,
that this 2026/27 Budget now projects the repayment in
full of the $605 million of Senior Notes maturing in January 2027.
[Desk thumping]
Hon. Zane J. S. De Silva: Yes! Say it again! Say it
again for your Opposite Leader.
Hear that Shadow? Hear that Shadow?
Hon. E. David Burt: Yes, Mr. Speaker , you heard that
correctly . This Government’s intent [is] to repay the
$605 million of debt in full .

Hon. Zane J. S. De Silva: In full!
[Desk thumping]
Hon. E. David Burt: This decision will reduce —
[Inaudible interjection]
Hon. E. David Burt: See, Mr. Speaker, they like to get
ahead of themselves. I told them to wait their time until
Budget time.

[Inaudible interjection]
Hon. E. David Burt: Take their time; wait their time until Budget time.

[Inaudible interjections ]

Hon. Zane J. S. De Silva: I can’t wait for their Reply.

[Inaudible interjections ]

Read on, Premier. Read on. Hon. E. David Burt: Mr. Speaker, this decision will reduce gross debt from $3.29 billion to $2.69 billion. More
importantly, it moves Bermuda onto a clear path to
eliminate [net] debt within a decade. By 2028/29, the
end of the 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.
Mr. Speaker , to ensure the debt reduction
strategy is executed well, the Ministry of Finance will
re-empanel the Debt Management Committee this
year. The Committee will guide the next phase of our
debt reduction plan by advising the best way to ensure the continued reduction of our debt. Though there is a
big debt repayment in January 2027, there may also be
the chance to reduce debt in advance of other repayment dates in the near future.

Keeping the Promise of Relief and Investment

Hon. E. David Burt: Mr. Speaker , before I turn to the
policies that this new Budget will fund, it is important
that the people of this country understand, in practical
terms, what the new c orporate income tax means for
them.
For many years, Bermudians have seen economic growth and strong performance in international
business but have reasonably asked how that success
translates into relief in their own daily lives. It is a fair
question, and one that this Budget begins to answer in a more direct way.
The revenue generated from the corporate income tax allows this Government to focus on two priorities that [ Bermudians ] have raised with us consistently :
providing meaningful relief from rising costs and
strengthening investment in the services and infrastruc-ture that the country relies on.
On the issue of relief, this Budget delivers a
significant reduction in payroll taxes. Every working
Bermudian will see a reduction in their payroll tax bur-den, and no working person in Bermuda will pay more
in payroll tax under this Budget. No business will pay more in payroll taxes, and most businesses will have a
reduction in payroll tax.
At a time when families are dealing with the
pressures of housing costs, food prices, and everyday
expenses, this Government believes that people should be able to keep more of what they earn. This
Budget also includes measures to help to reduce the
cost of electricity and provide some relief on the most
persistent household and business expenses.
Mr. Speaker , while relief is important, Bermudians have also been clear that they expect this Gov-ernment to invest in the future of this country, not just
to manage the present. This Budget therefore provides
the largest capital programme since 2008/09 and places Bermuda on a path to increase capital spending
to 2 per cent of GDP by the next fiscal year, following


Bermuda House of Assembly the significant reduction in national debt that this
Budget achieves.
This level of investment allows us to move beyond maintenance and begin addressing long- standing
infrastructure needs across th is Island. As part of this
commitment, the G overnment will bring forward a capital plan to fund the renovation and modernisation of
public schools, ensuring that students across all parishes are learning in safe, modern, and properly
equipped environments.
This investment is focused on ensuring that
every child has access to a learning environment that
supports their development and potential.
These measures reflect a balanced approach,
easing cost -of-living pressures where possible, while
making strategic investments that underpin a healthy,
fair, and resilient society for all of us. That is what the
corporate income tax makes possible, and that is how
this Government is keeping its commitment to relief and
investment for the people of Bermuda.
Mr. Speaker, I told you it is a long speech. We
are about a third of the way through. Should I continue?

Go ahead.

Hon. E. David Burt: Thank you, Mr. Speaker .

Discipline, Delivery, and Strengthening Capacity

Hon. E. David Burt: Mr. Speaker , as these relief
measures and investments are outlined it is also important to be clear about the discipline behind this
Budget and how tho se decisions were made.
This is the first Budget prepared fully in the era
of corporate income tax. Naturally, there were those
from His Majesty’s Loyal Opposition who predicted,
probably in the newspapers as recently as this week, that this Government would neglect the debt and, by
extension, neglect our people.

Hon. Zane J. S. De Silva: Yes.

Hon. E. David Burt: They , as often always, Mr.
Speaker, were wrong.
[Inaudible interjection]

Hon. E. David Burt: Additional revenue does not remove the need for discipline. If anything, it increases
the obligation to show value, results, and follow -
through.
Our approach has been guided by a few practical rules . We have avoided automatic, across -theboard increases in recurring spending. New revenue
should not create permanent obligations that cannot be
sustained if conditions change. We are also prioritis ing
fixing systems, not just funding symptoms. That means focusing on delivery bottlenecks that drive cost and frustration, rather than just repeatedly paying for the
consequences when those systems fall short.
Mr. Speaker , wherever possible, corporate income tax revenues are being directed toward investments that strengthen national capacity, reduce longterm pressure on the public purse, and improve Bermuda’s ability to do more for itself.
When in this Budget we speak about nationbuilding, we are speaking about whether we have the
ability to house our people. Whether our health care
system is affordable, stable, and trusted. Whether infrastructure projects move from approval to execution
with minimal delay. And w hether our courts function efficiently and our public services work when our people
need them.
This Budget therefore places priority on stabilising, reforming, and improving what is under strain. It
strengthens housing delivery machinery and the activation of dormant and derelict properties. It supports our
health care system, including additional long- term and
step- down care [ capacity ], so that hospital resources
are used more effectively. It advances infrastructure renewal and modernisation. And it invests in Government ’s delivery capability so approved policies and projects are executed more reliably.
Mr. Speaker , the Government is also taking
steps to ensure that new corporate income tax revenues contribute to long- term resilience. This includes
funding for strategic transformational investments that
are focused on the future, and in keeping with our re-sponsibility to remain good stewards for the next generation. Simply put, Mr. Speaker , the Government intends to use today’s opportunity to strengthen Ber-muda’s foundations for tomorrow, improving delivery
and leaving core systems in better shape than we found
them. That , Mr. Speaker, is the discipline behind this
Budget. And that is how responsible choices are translated into lasting benefits for Bermudians.
Mr. Speaker , it is important to note that this moment is not a result of corporate income tax alone. It
has been made possible by the hard choices this Gov-ernment has made since returning to office, steadily reducing deficits while making our tax system fairer and restoring balance to the public finances. Corporate income tax gives us additional room to act . But it builds
upon foundations that were deliberately strengthened
over the last nine years.
Mr. Speaker , I will now outline the remaining
policy pillars in this Budget, which together reflect a
consistent approach to strengthen foundations first, improve delivery capacity, and invest in systems that reduce long- term pressure rather than just simply funding
short -term fixes.

Tackling the Affordable Housing Shortage

Hon. E. David Burt: Mr. Speaker , housing is a critical
issue for our country. The reality is that high construction costs, limited labour, and financing constraints
1858 20 February 2026 Official Hansard Report

Bermuda House of Assembly make it increasingly difficult to deliver affordable homes
for our people. It may sound like a cliché that the Government must think outside of the box . But, Mr.
Speaker, that is exactly what this moment requires.

Modern Building Methods
Hon. E. David Burt: The Bermuda Housing Corporation, under the leadership of the Honourable Member,
the Deputy Premier and Minister for Housing and Municipalities, and the Honourable Member from constitu-ency 11, MP Christopher Famous, the Bermuda Housing Corporation are advancing permanent, steel -
framed modular and precast concrete systems, as part
of our housing delivery model. These methods allow us
to build faster and more cost -effectively while ensuring
that local contractors and trades remain central to delivery. These are not temporary structures. They are
durable, high- quality homes built to Bermuda’s standards and designed to stand the test of time. By embracing proven modern construction techniques we can build faster, build smarter, and expand supply while
continuing to support local industry.

Housing Delivery and Unlocking Supply

Hon. E. David Burt: Mr. Speaker , this Budget also focuses on fixing the practical blockages that keep
homes off the market and place housing out of reach
for too many Bermudians. As part of our long- term commitment set out in the 2025 Platform, Government has
begun structured exploration of options for the future of
the former Bermudiana Beach Resort and Grand Atlan-tic site, with the clear objective of returning this public
asset to productive housing use for Bermudians over
time.
Alongside, the Government is advancing work
to modernise the Acquisition of Land Act 1970, so it
better equips t he Government, acting through the Minister responsible for Public Works, to address the growing number of derelict and abandoned properties throughout the Island.
What are you laughing at, Craig? Didn’t you
read our Platform?

[Inaudible interjection]

Hon. E. David Burt: You didn’t read our Platform?
Hon. L. Craig Cannonier: Loved it.

Hon. E. David Burt: You can just hop across the other
side. You know. Come on.
[Inaudible interjections and laughter ]

Hon. E. David Burt: Mr. Speaker, housing is important.
So, I just want persons to make sure that they hear this.
Because alongside this, the Government is advancing work to modernise the Acquisition of Land Act 1970, so
it better equips t he Government, acting through the
Minister responsible for Public Works, to address the
growing number of derelict and abandoned properties
throughout the Island.
The policy aim is straightforward: To ensure
that properties left vacant for years can be returned to
productive and socially beneficial use, supporting housing availability, community renewal, and economic ac-tivity, while fully respecting constitutional safeguards,
fair compensation, and a transparent administrative
process. This includes establishing a national framework for identifying, certifying, and managing derelict properties through coordinated action throughout government.
Mr. Speaker , as legislation and supporting policy measures are put in place to address vacant and
derelict properties, restored or acquired properties will
be directed toward first -time homeownership, social
housing, and homelessness reduction pathways, so
that unused housing stock serves community needs ,
rather than someone’s investment and desire .
Mr. Speaker , I want to acknowledge that the
use of compulsory acquisition powers in limited hous-ing cases is not without historical sensitivity. Home
ownership, family land, and property retention are
deeply important to Bermudian families, especially Black Bermudian families . And this Government respects that history and that priority.
Any such powers will be applied narrowly,
transparently, and only where properties have remained derelict or abandoned for extended periods and
owners have not engaged despite repeated opportunities and support to bring those homes back into use.
Mr. Speaker, the objective is not to take family property,
but it is to prevent long- term blight, restore housing
stock, and return neglected properties to productive
community benefit. Taken together, these measures
are about restoring balance to a housing system that is
not functioning as it should. Mr. Speaker , it is not functioning as it should. A nd ensuring that land and buildings in Bermuda are working for the people of this country, while not sitting idle while families struggle to find a
place to live.
Delivery capacity is also being strengthened.
The Bermuda Housing Corporation will receive additional project and technical support so that approved
developments can advance.
Moving on to our Health Care system.

Health System Support
Hon. E. David Burt: Mr. Speaker, a health system
must function reliably before it can absorb major structural expansion. Therefore, this Budget prioritises stabilisation system efficiency as this G overnment prepares to make U niversal Health Care a reality.
One of the clearest pressure points today is patient flow at our hospital. Too many acute hospital beds


Bermuda House of Assembly are occupied by patients who no longer require acute
care but do not have appropriate step- down or longterm placements. That is difficult for patients, difficult for staff, and incredibly inefficient and expensive for the
system.
This Budget allocates capital and programme
funding to expand step- down and long- term care capacity outside of the acute hospital setting. This includes additional facility capacity, alternative care models, and more integrated referral pathways so that patients can receive care at the appropriate level. These
changes are designed to ease pressure on acute services and gradually improve system flow.
Mr. Speaker, this Budget continues and
strengthens Universal Health Care implementation
readiness work underway. As we all know, Mr.
Speaker, universal coverage is [a] complex , multi-year
reform requiring legislative design, actuarial and financial analysis, provider frameworks, data systems, and
phased transition planning. Moving ahead without that
work would create fiscal and operational risk, and that's
why this G overnment is taking its time to make sure we
get it right. But let's have no doubt, Mr. Speaker, it will
be delivered. The work now being advanced is focused on ensuring that when that expansion occurs, it is properly sequenced and sustainable.
Mr. Speaker, moving on to reinstating and reintegrating counselling services .

Reinstating and Reintegrating Counselling Services
Hon. E. David Burt: This Budget recognises that many
of the pressures seen in our health care, justice, and education systems have roots much earlier in people's lives. Too often, access to counselling and early mental
health support, particularly for young people, has been
fragmented or inconsistent at a point where it could make the greatest difference.
This Budget provides for reinstatement and
phased integration of counselling services, including
youth counselling, with a coordinated framework that
aligns health, education, and social services. The intention is not to recreate isolated programmes, but to ensure that counselling support is accessible, properly resourced, and progressively embedded within the systems that already work with young people and families.
It is our view that help earlier means fewer
emergencies later.
By intervening earlier and more consistently,
we reduce the likelihood that manageable challenges
escalate into crises that place heavier strains on hospitals, courts, and social services. This is a disciplined
and preventative investment that improves wel l-being,
supports families, and helps lower long- term public
costs.

Making Essential Goods More Affordable: F ood,
Shipping, and L ocal Production
Hon. E. David Burt: Mr. Speaker, affordability is not
only about prices at checkout, but it is about also
whether the Government has built the conditions for local production, competition, and supply resilience. This
Budget therefore includes targeted steps to support domestic food production and reduce avoidable administrative costs that can stand between Bermudians and
more affordable essentials.
This Budget provides for the waiving of certain
government fees for registered farmers relating to applications, testing, inspection, and ship ment processing
for the regulated import ation of approved pesticides,
crop plants, and growing media used in local food production. These are technical charges, but for small and
medium- sized producers, they accumulate quickly and
can slow expansion. Reduc ing them is a practical way
to support farmers and lower barriers to increased out-put.
The goal is to make it easier for local food producers to grow more food, more efficiently at a lower
cost.
This step sits alongside wider efforts to support
community -based food initiatives, streamline process
for local producers, and explore additional shipping and logistics pathways to improve supply flexibility. Together, these measures are designed to strengthen
food security and help ensure that more of w hat Bermudians consume can be produced, distributed, and priced sustainably closer to home.
Moving on to cooperative legislation and the
Cooperative Seed Fund, Mr. Speaker.

Cooperative Legislation and Cooperative Seed Fund
Hon. E. David Burt: Mr. Speaker, as this G overnment
prepares for the introduction of cooperatives legislation
in Bermuda, this Budget recognises a practical truth :
Legislation alone does not create opportunity unless it
is matched with practical support. New legal frameworks only deliver results when people have the resources and technical help to use them effectively.
This Budget establishes a strategic investment
envelope, a dedicated pool of funding designed to support future- focused initiatives in areas such as digital
transformation, entrepreneurship, artificial intelligence
[deployment] , and food security.
From w ithin this strategic investment envelope,
this Government provides for funding to support the
practical establishment and early developments of co-operatives across the I sland. This includes capitalising
a Cooperative Seed Fund or G rants Programme to deliver targeted financial assistance and technical support
for startup costs, govern ment structures, compliance
requirements, and initial business development.
The objective is straightforward, Mr. Speaker :
once cooperative legislation is enacted, there should
be a clear and properly resourced pathway for new cooperatives to form and operate. By pairing legislation
with funding support, technical guidance, and
1860 20 February 2026 Official Hansard Report

Bermuda House of Assembly appropriate oversight, we are giving cooperatives a real
pathway from idea to operation which will strengthen
Bermuda's domestic economy.
This Budget also signals this G overnment's intent to broaden financial participation and to support domestic competition by providing funding support to
existing cooperative financial institutions in Bermuda to
implement digital finance infrastructure. Work in this
area will proceed wit h regulatory readiness as a prerequisite. However, the goal, Mr. Speaker, is very simple: to support a more diverse local financial ecosystem.

Increasing the Capacity of Government to Deliver

Hon. E. David Burt: Mr. Speaker, none of these investments deliver results if the state itself cannot execute
effectively. For that reason, this B udget also targets
core delivery capability.
Resources are being provided to strengthen
justice system [capacity] and court modernisation, including staffing support, process improvements, and
enabling infrastructure to improve case throughput and
timelines. An effective justice system underpins both
social stability and economic confidence.
Funding is also provided for coordinated upgrade in border, customs, c oast guard, and immigration
capability, including equipment modernisation, training, and operational coordination. Securing borders and
ports of entry is a basic state responsibility and essen-tial to public safety and international credibility.
Delivery capability within the public service is
also being reinforced through continued investment in central policy coordination, ensuring that approved pol-icies and funding projects are actually delivered successfully. In parallel, funding programmes ar e already
underway to strengthen [the] public service talent and
leadership pipeline.

2026/27 Budget Estimates
Hon. E. David Burt: Mr. Speaker, having reviewed the
performance of the past and the progress of the current year, and having explained the policy rationale for the choices that this G overnment has made in this B udget,
I now turn to the Estimates of Revenue and Expenditure for the fiscal year 2026 /27.
We know, Mr. Speaker, as I have said, that this
Budget has framed the unique and historic moment in
our journey, representing the first full year where struc-tural changes to our tax system, combined with years
of disciplined economic management, converged to
provide Bermuda with a level of fiscal capacity that was
once thought to be out of reach.
Let me start, Mr. Speaker, with our revenue
projections.

Fiscal Year 2026/27 Revenue
Hon. E. David Burt: Mr. Speaker, the revenue estimates for the upcoming fiscal year represent a historic shift in our financial position. Total revenue for fiscal
year 2026/27 is estimated at $2.03 billion, Mr. Speaker.
This landmark achievement is the first time in our history that government revenue is projected to exceed
the $2 billion mark. This represents a substantial increase of $596.3 million, or 41. 7 per cent, over the original estimate for the current fiscal year.
The primary driver of this increase is the provision for Corporate Income Tax receipts, which, as mentioned earlier in the speech, is estimated at $753.2 mil-lion for the coming year. This performance is as a result
of years of meticulous work by the Ministry of Finance,
the Corporate Income Tax Agency, and also the International Tax Working Group to ensure that Bermuda remains a premier jurisdiction while meeting our inter-national obligations.
Mr. Speaker, the Government has remained
committed to the principle of fairness. We promised to
reduce the burden on Bermuda's workers. Through
these changes that I am about to announce, the Government will ensure that no worker in this country will
pay [more in] payroll tax. This is a deliberate policy to
increase the take- home pay of Bermudians and to stimulate activity in our local economy.
Moving to tax and fee changes , Mr. Speaker.

Tax and Fee Changes

Hon. E. David Burt: I will begin with a simple fact —I
think I've said a few times already. No business in Ber-muda will pay more in employer payroll tax [under] this
Budget, and no worker in Bermuda will pay more in employee payroll taxes. Every employer rate will either go
down at its current level or will decrease. Similarly, the
total tax bill for every worker on this Island will go down.
Every worker will go down.
Let's go to employer payroll tax reductions.

Employer Payroll Tax Reductions
Hon. E. David Burt: Mr. Speaker, the Government is
providing relief to employers, ensuring that they can re-duce their costs of doing business. The following em-ployer payroll tax rates will decrease effective the 1st of
April 2026:
• International Business (Exempted Undertakings): The rate will decrease from 10.25 per
cent to 9.75 per cent .
• Large Local Employers that have remuneration
greater than $1 million: T he rate will be reduced from 10.0 per cent to 9.5 per cent .
• The rates will be reduced for all medium- sized
businesses (that is, with remuneration between
$200,000 and $1 million) by 0.5 per cent .
• Hospitality (which is hotels, guest houses, and
restaurants ): To support our vital tourism


Bermuda House of Assembly sector that rate will be reduced from 5 per cent
to 4 per cent .
• Retail (Special [Retail] Group): T o support our
retailers that rate will be lowered from 6 per
cent to 5 per cent .
• Bermuda Hospitals Board and Corporations of
Hamilton and St. George’s : The rate will move
from 3.5 per cent to 3.0 per cent . And Mr.
Speaker, important to note, that nursing and
rest homes will be added to this category to reduce their expenses as they care for a growing
senior population.
• Self-Employed Caregivers: I n line with our platform commitments, employer payroll taxes for
self-employed caregivers will be eliminated.
• Support for Seniors: T he employer portion of
payroll tax to be exempted on the first $96,000 of remuneration for Bermudian employees
aged 65 and over , an initiative to support seniors who want to remain in the workforce.
• And finally, Mr. Speaker, t he Local Dividend
Exemption is being raised from $10,000 a year
to $20,000 a year.
The Government is also maintaining the zero
[per cent] or 1 per cent rates for our small businesses,
charities, and Economic Empowerment Zones. As I
said, Mr. Speaker, no entity in Bermuda will pay more in taxes under this B udget.
Now, Mr. Speaker, moving to the employee
payroll tax .

Employee Payroll Tax
Hon. E. David Burt: This Government is delivering a
comprehensive reduction of the tax burden for all people working in Bermuda. This will be achieved through a targeted adjustment of our marginal tax bands, ensuring that all workers have a tax reduction.
Starting the 1st of April 2025, the Government
is making the following adjustments to our marginal tax rates.
• Band 1 (earnings up to $48,000) w ill be reduced from 0.5 per cent to 0.25 per cent .
• Band 2 (earnings between $48,000 and
$96,000) will be reduced by 1.5 per cent . They
will go from 9.25 per cent to 7.75 per cent .
• Band 3 (e arnings between $96,000 and
$200,000), the marginal rate for this portion of income will move from 10.0 per cent to
10.75 per cent .
• Band s 4 and 5 will remain the same.
Mr. Speaker, as I have to do every time we
change payroll tax rates, because there will be some
persons who may want to misrepresent what is happening, I am just taking my time to spell it out.

Yes. Yes.
Hon. E. David Burt: So that there's no confusion, because our —

[Inaudible interjection]

Hon. E. David Burt: Yes, I know you like to confuse
people, but I just . . . I want to get it right this time.
Because our tax system is marginal, every
worker, regardless of their total salary, benefits from
the lower rates in the first two bands. And these savings
more than offset the adjustment of the third band, resulting in a net tax cut for everyone.

[Inaudible interjections]
Hon. Zane J. S. De Silva: Get that?

Hon. E. David Burt: Everyone.
Examples are as follows :
• A worker earning $48,000 will see their annual tax drop from $240 to $120, a 50 per cent reduction.
• A public officer earning $96,000 will see their bill drop from $4,680 to $3,840, a direct saving
of $840 a year.
• For a professional earning $120,000, the tax
bill drops from $7,080 to $6,420, putting $660
back into their pocket.
Yes, Mr. Speaker, everyone will pay lower
taxes. Everyone.

[Inaudible interjections]

Hon. E. David Burt: Mr. Speaker, I can't, I can't, I can't,
I can't.
[Inaudible interjections and laughter ]

Hon. E. David Burt: Mr. Speaker, progress since 2017,
delivering fairness.

Progress Since 2017: Delivering Real Fairness
Hon. E. David Burt: Mr. Speaker, we must also look at
the long- term progress of this G overnment. When taking office in 2017, the tax burden on our workers was
the highest ever.
Some Hon. Member s: Mm-hmm. Yes.
Hon. E. David Burt: The highest ever when we took
office, Mr. Speaker. Now all working- class Bermudians
are paying far less in taxes than they were nine years
ago.
• In 2017, a worker earning $48,000 paid $2,280
in annual payroll tax. Under this Budget, Mr.
Speaker, they will pay just $120 a year. That is
a 95 per cent reduction in their tax burden
since the PLP took office.
1862 20 February 2026 Official Hansard Report

Bermuda House of Assembly • In 2017, a worker earning $96,000 paid
$5,820. Today, they pay just $3,840, a nearly
$2,000 annual saving for that worker, or $4,000
a year more for a family.
That is what we have done, Mr. Speaker.

A Broader Agenda for Affordability

Hon. E. David Burt: Mr. Speaker, relief in this Budget
does not end with payroll tax reductions. This G overnment has reduced the tax burden for working families
time and time again, and this B udget continues this
work .

Lower Electricity Costs

Hon. E. David Burt: Mr. Speaker, the Government will
eliminate the final $0.04 per litre of customs duty on fuel
for electricity generation, resulting in lower energy
costs for homes and businesses. This reduction will
mean that over the past two years, this P rogressive Labour Party Government has eliminated the taxes on
fuel for electricity generation that the other side doubled, Mr. Speaker, saving the average household $375
a year.
Moving to essential goods, Mr. Speaker .

Essential Goods Duty Reduction

Hon. E. David Burt: To support the Affordable Bermuda Agenda, spearheaded by the H onourable Member, the Minister for Home Affairs, this G overnment will
reduce or eliminate duty rates on a wider range of essential goods. These include everyday household hy-giene and cleaning products, infant nutrition and care
items, core dairy products, bakery goods, grains, pan-try staples, selected meats, and fresh produce. These
are the basics that families purchase week after week,
and this measure is designed to ease pressure at [the]
checkout counter and make a practical difference in the cost of living for Bermudian households.
Moving on to vehicle licens ing, Mr. Speaker .

Vehicle Licensing

Hon. E. David Burt: This Government will keep its
commitment to reduce private car licens ing fees by a
further 10 per cent , effective 1 April. For Bermudian
families, vehicle licen sing is a fixed annual cost, and
this reduction provides a direct and predictable relief. It
is also a practical step towards lowering household expenses, ensuring that Bermudians benefit from the
country's stronger financial position.
Mr. Speaker, these measures are about one
thing : putting money back in people's pockets and easing the cost pressure that families are feeling. Corporate Income Tax gives the ability to do that, and this
Budget ensures that Bermudians benefit directly.
Further Custom Duty Changes
Hon. E. David Burt: Mr. Speaker, further adjustments
will be made to customs duty. Recent changes to reduce or eliminate duty on all motor vehicle parts and building supplies unintentionally missed some tariff
codes. Those missing codes will be added and will be
done during this Budget session.
Also, Mr. Speaker, as you know, we have an
open budgeting process. People can write in for submissions . Following representation from florist s in Bermuda , and to support our hotel and hospitality sector ,
duty charged on imported fresh flowers will be reduced
from 25 per cent to 5 per cent .

[Inaudible interjections]

Hon. E. David Burt: Plenty of time for next year.

[Inaudible interjections]
Hon. E. David Burt: I'm sorry, Mr. Speaker. The Deputy Leader for the O pposition is saying I'll be gone next
year. I said he has been predicting I'll be gone for quite
some time.
It is a ll right. Let me continue, Mr. Speaker.

[Inaudible interjections]

Hon. E. David Burt: This Budget . . . this Budget, it is
just getting warmed up right now.

Yes, yes, yes.

[Inaudible interjections]

Fiscal Year 2026/27 Current Expenditure

Hon. E. David Burt: Mr. Speaker, current account expenditure, excluding debt service, is estimated at $1.25
billion. This is an increase of $137.7 million, or 12.4 per
cent, over the 2025 /26 original estimate. This figure includes a baseline expenditure of $1.12 billion and a
provision of $124 million for strategic investments.
The baseline expenditure represents the day -
to-day costs of government services for all ministries,
which will be detailed later in this S tatement. The government has maintained a disciplined approach to
these costs. However, there are increases for all ministries tied to agreements reached with public sector employees, which result ed in salary and overhead costs
rising, contributing to the sizable increase in baseline
spending. Further contributors to the baseline current
account increase are the mid- year allocations appropriate to ministries. These amounts have carried into the
new fiscal year. And, of course, Mr. Speaker, as those
amounts were not full -year amounts, some of those
amounts are now higher because they must represent
the value for the full year.


Bermuda House of Assembly Let me talk about, Mr. Speaker, transformational investments.

Transformational Investments

Hon. E. David Burt: Mr. Speaker, a stronger fiscal position gives the ability to invest in areas that shape the
long-term well -being of our people. This Budget allocates $124 million in strategic and transformational in-vestments, primarily in health care, while also strengthening the capacity of our public service and investing in
the future resilience of our economy.
First, I will go to e xpanded health care support,
$87 million.

Expanded Health Care Support —$87 million
Hon. E. David Burt: Mr. Speaker, in our 2025 General
Election manifesto, the Government committed to prioritising the health of our people. This B udget delivers
on that commitment with $87 million allocated to the Bermuda Hospital s Board, the continued role of U niversal Health Coverage, and additional investment in the
Health Insurance Department to provide greater levels
of health care access.
A further $3 million is allocated to advance U niversal Health Coverage and digital health initiatives.
This continues the work already underway to modern-ise how care is funded, delivered, and accessed.
Mr. Speaker, $14 million is carried forward to
the Health Insurance Department to fund the expansion
of health services under HIP and FutureCare, including
the already rolled out free annual health examinations
and expanded prescription drug coverage. Further, and I want you to hear this, Mr. Speaker, the Department
will expand preventative access with an additional number of primary care visits with a set copay of $25. These are practical measures that reduce financial barriers to preventative care.
The Bermuda Hospitals Board will receive $55
million in time -bound support to meet statutory , contractual and operational obligations and to address near-term cash flow pressures. Mr. Speaker, hospital
services are not optional. Investment here ensures
continuity of care, stability for frontline staff, and protection of essential services, while longer -term reforms, as
mentioned earlier in this Budget speech, continue.
Moving to expanding FutureCare support for
our seniors.

Expanding FutureCare Support for Seniors —
$15 million
Hon. E. David Burt: Mr. Speaker, this Budget also
takes a major step in implementing the recommenda-tions of the Tax Reform Commission. This G overnment
is allocating $15 million toward FutureCare premium
subsidies for low -income seniors, partially implementing the first expenditure waterfall of the Tax Reform Commission's recommended priorities. While the Commission's full recommendation was $30 million, this first
phase will provide coverage support for up to 2,200
seniors, approximately 15 per cent of Bermuda's senior
population.
This is significant as it represents the first direct
deployment of Corporate Income Tax capacity into the
waterfall framework that the Tax Reform Commission
laid out for the I sland. It targets relief where it's most
needed amongst seniors living on fixed incomes and establishes the foundation for expansion in future years as fiscal space allows.

Supporting the Public Service—$23 million

Hon. E. David Burt: Mr. Speaker, $12 million has been
allocated towards the Government Employee Health
Insurance Fund to ensure its long- term sustainability in
the face of rising medical costs and claims. An additional $11 million is allocated for employee retention
and benefits, reflecting our commitment to maintaining a professional and capable public service.

Transformational Funding —$14 million
Hon. E. David Burt: Mr. Speaker, beyond health care,
this Budget establishes a $14 million pool of transformational funding to support strategic projects that strengthen long- term economic resilience and government productivity. This is not a pre- allocated spending
line, but a centrally managed fund that ministries may
access for clearly defined and [time] -bound initiatives.
To qualify for funding, projects must demonstrate
measurable impact, align with national priorities, and
be approved by Cabinet under existing procurement
rules.
Importantly, this funding does not create a permanent baseline obligation. It is deliberately structured
as one- off funding and has not been automatically carried forward under the Medium- Term Expenditure
Framework [MTEF] . This drives the need to ensure that
priority reforms are accelerated without adding struc-tural costs into future budgets. And of course, Mr.
Speaker, if strategic investment is done right , it should
lower or at least moderate future costs.
The $14 million is assigned as follows :
• Five million dollars is allocated to advance Bermuda's “on-chain economy ” and strengthen
our global leadership position in digital assets.
Projects will improve financial efficiency, both
inside and outside of government.
• Three million dollars is allocated to support entrepreneurship and cooperatives, strengthen-ing local ownership and business formation.
• Three million dollars is allocated for the deployment of proven artificial intelligence projects
within government to improve the efficiency of
public services.
1864 20 February 2026 Official Hansard Report

Bermuda House of Assembly • Three million dollars is allocated to enhance
food security and supply chain resilience, reducing vulnerability to external disruptions.
Mr. Speaker, this is how you translate fiscal
strength into lasting change for the future.
Now, Mr. Speaker, I would like to move on to
the capital expenditure for this year's budget.

Fiscal Year 2026/27 Capital Expenditure

Hon. E. David Burt: Mr. Speaker, capital expenditure
for the 2026/ 27 fiscal year is estimated at $182 million.
Mr. Speaker , that is an increase of 32.2 per cent or 21
. . . sorry, $32.2 million, or 21 per cent over the original
estimate of the prior year. This is the largest planned
capital programme since 2008/ 09, and it is another step
forward towards increasing capital spending to the goal
of 2.0 per cent of GDP.
As we know, Mr. Speaker, for too long the government has been forced to stretch ( or try to stretch )
the life of critical assets because finances simply did
not allow us [to do] what needed to be done. That approach, as we have all seen and experienced, comes
with a cost and eventually shows up in breakdowns,
delays, and risks to public safety. With our stronger fis-cal position, we are now a better place to invest for the
future while being more proactive on maintaining existing assets.
This Budget includes $9.4 million for the Swing
Bridge [and] $8.8 million for the expansion of the Tynes
Bay Waste- to-Energy Facility. These are national assets that must work as they affect the daily function of
the country and they directly touch public safety and
health.
The Government is also putting major resources into the facilities that serve families. This Budget allocates $26.9 million to the Bermuda Housing
Corporation to accelerate refurbishment and move new
affordable housing units forward. It also contains $14
million in capital funding, which is a 71 per cent increase for the Ministry of Education to upgrade facilities
and invest in new technologies at our public schools
and the Bermuda College.
The Government is also investing in things
people see and feel every day. Mr. Speaker, $1.5 million has been allocated to address dangerous walls
[and] $5 million for a continued aggressive road works
programme. We are also investing $1.4 million in solar
PV for government buildings to cut energy costs and
reduce emissions, along with $3.5 million for new
buses and $5.3 million for vital vehicles and equipment.
Finally, Mr. Speaker, as I would say a farewell
gift to the wonderful Members who I have served with
in this House, this Budget includes , for the first time , a
$3 million allocation to community improvement pro-jects. This funding will support projects in constituencies put forward by M embers of Parliament. Bigger
capital [budgets] should not just fund large projects, but also the smaller improvements that may improve the
quality of life in Bermuda.

[Desk thumping]

Hon. E. David Burt: At least one person is happy.

[Desk thumping]
Hon. E. David Burt: Maybe Jache will give them the
money.

Fiscal Year 2026/27 Debt Service

Hon. E. David Burt: Mr. Speaker, debt service and
guarantee management costs for fiscal year 2026/27 are estimated at $124.75 million, and this represents a decrease of $2.75 million, or 2.5 per cent , compared
[to] the original estimate for this current fiscal year .
This reduction in our annual interest expense
is a direct result of the proactive debt management
strategy I have shared with this Honourable House earlier today, and by utilising our improved fiscal capacity
to repay $605 million in Senior Notes in full, the Government is successfully reducing the total amount of
outstanding debt, and consequently, of course, the cost
of servicing it.
While savings in this fiscal year are a positive
step, our medium- term financial projections show that
as a result of the planned $605 million repayment, our
interest costs are estimated to fall significantly to $102
million the following fiscal year.
This means, Mr. Speaker, that this single decisive action to reduce the I sland's debt burden will save
the taxpayers of Bermuda $25 million every single year
in interest costs alone. It represents a permanent reduction in the cost of debt and a permanent increase in
our ability to fund the priorities of the people.

Ministry Highlights
Hon. E. David Burt: Mr. Speaker, this Budget reflects
priorities that the Government has set for the I sland,
confirmed by the electorate in our election victory a
year and two days ago. And, most importantly, this Budget funds the work required to deliver on those priorities.
I will now highlight key allocations across a
number of ministries and departments.

Cabinet Office and Digital Innovation

Hon. E. David Burt: Mr. Speaker, the Cabinet Office
and Digital Innovation have been allocated $58.9 million, an increase of $ 5.3 million, or 10 per cent .
The Department of Librar ies and Archives
funding supports a new Youth Library Outreach Officer
to expand services for young people and students, and
the continued digitisation of Bermuda's archival records


Bermuda House of Assembly to ensure they are preserved and accessible to the public.
In the Department of Planning, funding supports the use of artificial intelligence tools to expedite
building permit approvals and improve decision- making
alongside efforts to update the Bermuda Plan and
shorten approval timelines .
Digital Transformation funding advances the
One Stop Shop in online payments for government services, expanding online access with an upgraded government portal to be launched this year.
The Department of Information and Digital
Technologies funding expands the IDT Apprenticeship
Programme, building local digital skills and preparing
the next generation for careers in technology. Additional investment strengthens cybersecurity and ensures government systems remain secure and reliable.
The Department of Employee and Organisational Development receives additional funding to support training and workforce development. And, Mr.
Speaker, if you look inside of the items in the Budget,
you will see there is a significant increase in training
investment inside of this Budget . And, also, they have
received funding for the launch of the new Public Service Scholarship Programme, which was highlighted inside of our election manifesto.
And this programme provides tuition support
for Bermudians pursuing priority fields of study in ex-change for a five- year commitment to serve their country in the public service or in public health care. It cre-ates a clear pathway for talented Bermudians to build
meaningful careers at home while strengthening the future leadership of our public service.
Under Capital Expenditure, funding continues
for community club development, including a $500,000
allocation alongside significant investment in digital infrastructure to strengthen cybersecurity and upgrade existing government systems.

Ministry of Justice
Hon. E. David Burt: Mr. Speaker, the Minister of Justice, the Honourable Minister of Justice and Attorney
General , who is with us in the C hamber, has been allocated $63.24 million, an increase of $ 5.5 million, or
9.5 per cent . The majority of this increase is attributable
to salary -related costs, reflecting approved [increments] in salaries across the Ministry’s departments.
However, the Department of Corrections will
recruit Additional staff to strengthen frontline capacity and support safe, effective management of correctional
facilities. Capital funding has been allocated for the replacement of obsolete furniture and essential fixtures,
addressing long- standing needs and improving the
functionality and safety of working and living conditions within correctional facilities.
In addition, capital funding has been provided
for the implementation of a C orrections Management
System, a critical modernisation initiative that will introduce an electronic platform to support inmate record management. This is consistent with the recommendations of the recent prison's review.
The Department of Public Prosecutions will receive support in preparation for hosting the 2027 Inter-national [Association of] Prosecutors' Conference. This
significant event will enhance Bermuda's international
standing within the global prosecutorial community and
strengthen professional networks that contribute to the
continued development of prosecutorial excellence.
At the Ministry's headquarters, funding has
been allocated to meet the Ministry's obligations under
the National Anti -Money Laundering Committee
(NAMLC) framework and will support essential regional
and international engagements, ensuring that Bermuda
is aligned with global standards in AML and countering
the financing of terrorism to protect our international reputation.
Additional funds in the Ministry of Justice have
been allocated to support the relocation of the Legal Aid Office to provide for a more functional and effective environment for staff and to improve accessibility for clients.
Moving to the Ministry of Finance, Mr. Speaker.

Ministry of Finance
Hon. E. David Burt: The Ministry of Finance has been
allocated $277.3 million, an increase of . . . $10.7 million, or 4 .0 per cent. A total of $116.7 million for employee overheads, an increase of $13.5 million, and interest on debt of $124.8 million, together represent
87.1 per cent of the funds assigned to the Ministry. The
interest allocation, of course, reflects a small reduction due to the planned earlier debt repayment.
The Ministry of Finance has retained a budget
of $3.5 million to work with external experts in progress-ing reforms to the tax framework, including the implementation of housing tax credits, so I can fund that
massive housing programme.

Yes, yes.
Hon. E. David Burt: Other priorities for the Ministry include advancing contributory pension reform while continuing the work required ahead of Bermuda's mutual
evaluation assessment.
Having transferred the beneficial ownership
register from the Bermuda Monetary Authority to the
Registr ar of Companies, we will advance the implementation of legitimate interest access in line with Bermuda's international commitments.
The Ministry has allocated $2.7 million in capital funding primarily for IT upgrades throughout its departments.
Moving to the Ministry of Education , Mr.
Speaker.

Ministry of Education
1866 20 February 2026 Official Hansard Report

Bermuda House of Assembly Hon. E. David Burt: The Ministry of Education has
been allocated $156.5 million, representing an increase
of $7.3 million, or 5 per cent , over the prior year.
Capital funding has been increased by 71 per
cent, supporting a stronger overall investment in
maintenance and upkeep of all public schools. This includes phased safety and security upgrades, electrical
and ICT readiness improvements, initiatives to improve
air quality and cooling in classrooms . Capital and operational investments to support continued enhance-ments to Signature Schools at The Berkeley Institute,
CedarBridge Academy, and Sandys Secondary
School, alongside upgrades to technological infrastructures and modernised computer labs, faster i nternet access, and [expanded] use of digital learning platforms.
The Ministry's Scholarships and Awards funding has been increased by $420,000, to a total of $2.2
million for post -secondary education.
Diallo, how much was it when we came into office? Less than a million?

Hon. Diallo V. S. Rabain: Less than a million.

Hon. E. David Burt: Yes. Less than a million when we
came into office, Mr. Speaker . So, we more than doubled the scholarship budget. This expanded investment
provides more opportunities for young adults to increase access to financial support and pursue tertiary education and training.
The number of Government Scholarships will
be increased by two, specifically to support students demonstrating proficiency and interest in creative arts,
important, Mr. Speaker, and also health and sports -related fields. Additional funding has been allocated to
several awards categories, including Technical and V ocational, Applied Science, Non-traditional, Teacher Education, and T eacher Sabbatical awards.
Funding is also provided for Bermuda College,
supporting delivery of its 2025- 2030 Strategic Plan, expanded programme accessibility, stronger alignment
with Bermuda's workforce and economic priorities in
preparation for an upcoming accreditation review.
Moving to the Ministry of Health, Mr. Speaker.

Ministry of Health

Hon. E. David Burt: The Ministry of Health has been
allocated $302.5 million, an increase of $57 million, or
approximately 23 per cent over the previous year. This
increase reflects targeted investments to improve
health care affordability, stabilise hospital services, and
advance Universal Health Coverage.
The Ministry of Health’s priorities for the coming fiscal year focus on expanding community care, advancing Universal Health Coverage by modernising the
health system, and the funding will support the Bermuda Hospitals Board while strengthening community
services so residents receive care in the appropriate
setting. To meet growing long- term care needs, the Ministry will advance the rebuild of the new Lefroy
House with increased bed capacity, advance the Sylvia
Richardson Care Facility expansion, and establ ish a
30-bed unit to improve patient flow and ease Emergency Department pressure at the Bermuda Hospitals
Board.

[Desk thumping]
Hon. E. David Burt: Primary care investments include
refurbishing the Hamilton Health Centre, St. George's
Clinic, and Somerset Clinic, implementing modern
electronic medical records , and expanding capacity for
low acuity care.
Advancing Universal Health Coverage remains
central, and by 2026, this year, October 2026, all local
residents will have access to health benefits. I want to say it one more time, Mr. Speaker.

Wow!

[Desk thumping]

Hon. E. David Burt: This work includes finalising the
core benefits package, which includes regulation of copays for those with benefits, and the continuing subsidies for HIP and F utureC are. The Ministry will also advance workforce development through extended nursing scholarships.
Moving to the Ministry of Economy and Labour ,
Mr. Speaker.

Ministry of Economy and Labour

Hon. E. David Burt: The Ministry has been allocat ed
$29.1 million, an increase of $1.5 million. This investment will advance the continued implementation of the
Economic Development Strategy where significant progress has been achieved.
The Bermuda Economic Development Corporation will receive funding of $2.2 million, which will strengthen entrepreneurship and bolster the growth of
small and medium- sized businesses. The Bermuda
Business Development Agency, having completed its
transition to an Investment Promotion Agency, will receive $4.3 million to enhance its role in positioning Bermuda as a premier blue- chip jurisdiction for foreign direct investment in an increasingly competitive global
market.
The Department of Workforce Development
will receive an additional $213,000 to support strategic
planning and the delivery of high- quality programmes.
Specifically, these funds will strengthen local and


Bermuda House of Assembly overseas apprenticeship training, improve workforce
readiness, expand digital literacy initiatives for sectors
such as construction, hospitality, and digital finance.
The Registry General will receive an allocation
that is increased by $265,000 to capitalise on the greater revenue opportunities created by the new
Trade Marks Act 2023, which went into effect last year.
The funding will support continued modernisation of patent examinations, ensuring adequate training and recruitment to meet increased demand.
The largest increase within the Ministry is for
the Department of Statistics, which will receive an allocation . . . an additional allocation of $1.25 million, and
this additional funding is dedicated to the 2026 Census
of Population and Housing.
Moving on to the Ministry of Public Works and
Environment.

Ministry of Public Works and Environment
Hon. E. David Burt: Mr. Speaker, the Ministry of Public
Works and Environment has been allocated $ 90.9 million, an increase to $ 6.8 million , or 8 per cent .
Improving infrastructure and community safety
remains a priority. As such, the Government has allo-cated an additional $1 million in funding to address
safety concerns on private roads. Once legislative
changes are in place, this funding will improve safety
standards and ensure consistent maintenance across
affected neighbourhoods.
With an investment of $9 million, the Ministry
will begin the construction of the new S wing Bridge, a
critical piece of our national infrastructure and vital
transport corridor for the people in St. George's.

[Desk thumping]
Hon. E. David Burt: In addition, $500,000 will be allocated for additional workers and machineries to ad-dress overgrown roadside verges, improving safety
along our main roads as well as the Island's overall appearance.
The Ministry will be investing $2.5 million to
break ground on the new Agricultural Centre, unfortunately delayed from last year . And to preserve and revitalise public assets , $4.5 million will be used to refurbish and redevelop several underutilised government properties, including Montpelier, the Admiralty House
Ballroom, and the St. David's Lighthouse.

Woo-hoo!

[Inaudible interjections]
Hon. E. David Burt: These improvements will return
valuable assets to productive use and enhance com-munity engagement with these historic sites.
A further $1.7 million will support restoration
works across national parks and public lands, including the B otanical Gardens, Admiralty House Park, and several public beaches.
Environmental sustainability remains central to
the work of the Ministry, and therefore $9 million has
been allocated to initiate the full refurbishment of the
Island's waste management infrastructure at the Tynes
Bay Waste- to-Energy Facility.
Finally, $1.4 million will advance the Government's renewable energy commitment through the r ooftop solar programme by installing systems across multiple public buildings.
Moving to the Ministry of Tourism and
Transport, Culture and Sport.

Ministry of Tourism and Transport, Culture and Sport

Hon. E. David Burt: The Ministry of Tourism and
Transport, Culture and Sport has been allocated
$109.1 million, an increase of $7.5 million , or 7 per
cent.
The [Department of] Public Transportation has
been allocated $3.5 million in additional capital funding
to support the arrival of 20 new electric buses, along
with funding to cover the down payment to order a further 20 new buses. The Ministry will continue to provide
grant f unding that directly supports grassroots and
community cultural events to help local vendors, artists, and small businesses. In 2024/ 25, the programme supported 36 local vendors, and thus far this year has already supported 36 vendors, ensuring the continued focus on uplifting community -led initiatives and local participation.
The Bermuda Tourism Authority will receive a
$4 million funding boost, and this grant funding represents a target ed investment to strengthen Bermuda's
tourism sector, with a particular focus on driving visitor demand during the months outside the summer season.

Yes!

Hon. E. David Burt: Why is this important? Because
this additional funding will support the expansion of the
sales and marketing [initiatives] to effectively promote
the 617 new hotel rooms expected to come home to
come online later this year due to the opening of the
Fairmont Southampton property, Mr. Speaker.
[Desk thumping and i naudible interjections]
Hon. E. David Burt: An overall increase of $759,000
has been allocated to the Department of Sport and
Recreation ’s operating budget. Of this, $560,000 is
1868 20 February 2026 Official Hansard Report

Bermuda House of Assembly specifically designated to support the operation of the
golf courses.
The Department will continue to offer support
to parents by offering Camp Connect again this summer, providing approximately 4,000 summer day camp
access space for school -age children during the summer break. The support of national sporting bodies and
elite athletes also remains at the forefront, with over $2
million alloc ated towards those initiatives.
In addition, $2.5 million in capital funding has
been allocated to the National Sports Centre to ad-vance critical infrastructure improvements. These include the completion of repairs to the g randstand roof,
pool cleaning and maintenance works, asphalting of
the main parking lot, and upgrades to the North Field
lighting system.
An increase of approximately $1 million in Bermuda Airport Authority's grant funding for its operational budget will support succession planning and [talent] development initiatives for the Authority's ageing
professional workforce. The Airport Authority ’s capital
budget will increase, which will also resource critical projects for IT and cyber resilience- related initiatives,
structural health and safety, and—important for me,
and I'm sure many people in this country who always look at that site and get ups et when it goes down—upgrades to the Bermuda weather radar.

Ministry of National Security
Hon. E. David Burt: The Ministry of National Security
has been allocated $137 million, Mr. Speaker, an increase of $9 million, or 7 per cent .
This increase will provide funding to cover the
salary increases awarded to all government employees
but will also enable departments to continue their recruitment drives to fill vacant posts in critical areas within the Bermuda Police Service, Customs, and the
Bermuda Fire and Rescue Service. Moreover, this additional funding will enable the Royal Bermuda Regiment to increase its border protection maritime operations via recruitment for new posts within the Coast
Guard.
As part of the National Violence Reduction
Strategy, the M inistry Headquarters has been allocated
funding to continue its support for outreach and counselling services to the community. This will provide support for education programmes and anti -violence campaigns, as well as individual and family counselling and
support services, all of which are aimed at reducing vi-olence in the community.
As mentioned earlier, funding has been allocated to Bermuda National Drug Control for its Adoles-cent Substance Abuse Treatment Programme. This is
to address the fact that at present there is no specific
addiction treatment programme designed to provide services to adolescents between the ages of 10 and 18
years . And that will be fixed inside of this particular
budget. Capital funding of $9.3 million has been allocated for 2026/ 27, and this funding will cover the cost
of purchasing new vessel s for the Coast Guard, as well
as the completion of the Coast Guard maintenance shed. This allocation will also fund the purchase of a new [fire] truck for the Bermuda Fire and Rescue Service, continued renovation of the Police Headquarters
in Prospect. In addition, capital funding has been allocated to Customs for the construction of the scanner
hall at the docks. A nd it's not here but will also complete
the deployment of the speed camera system.

Ministry of Youth, Social Development and Seniors

Hon. E. David Burt: Mr. Speaker, the Ministry of
Youth, Social Development and Seniors has been allo-cated $97.2 million, an increase of $6 million, or 6.6 per
cent.
New funding will establish a disability unit
within the Ageing Disability Services for enhanced care and alignment with the UN Convention on the Rights of
Persons with Disabilities. This new unit will support accessibility and inclusion policy services and awareness
for individuals living with disabilities.
Amendments to the Child Day Care Allowance
Act will boost assistance for families with multiple children under age four, improving affordability for working parents. The income threshold for F inancial Assistance
pensioners has been increased from $500 to $800 .
This Budget will support that increase, enabling recipients to retain more income.
A National Youth Council will ensure young
Bermudans' voices are considered in policymaking, and this Budget provides more avenues for youth engagement in civic affairs, promoting leadership opportunities and soliciting feedback through community
events and forums.
The Charities Act will also be modernised to
strengthen AML and counterterrorism measures, protecting nonprofits from exploitation.
And increased funds will support nursing
homes and homelessness initiatives with a comprehensive strategy to prevent and address homelessness
through early intervention and essential services.
Capital investment will continue with the development of a new senior day care facility at the former
Gilbert Institute site in Paget , and this will provide structured day programmes and respite services and recreation activities for seniors.
Moving on, Mr. Speaker, to the Ministry of
Home Affairs.

Ministry of Home Affairs

Hon. E. David Burt: The Ministry of Home Affairs has
been allocated $6.6 million for the next fiscal year, rep-resenting an increase of $800,000, or 14 per cent .
The Budget moves from foundation to sustained delivery, translating the framework established


Bermuda House of Assembly in 2025/ 26 into the institutional capacity and legislative
reform that the public has requested.
This new B udget will fund a new policy analyst
hired to address a critical staffing gap and advance the
implementation of affordability initiatives that emerge from public engagement, including the expansion of the
Grow, Eat, $ave programme, which addresses food security.
A Residential Rent Registry covering all rented
units will be established to protect residents against unfair and arbitrary rent increases, responding to the housing concerns that top the public's list of priorities.
A human resources structure will also be developed for
Consumer Affairs to support piloting the transfer of consumer protection functions other than housing to the Regulatory Authority, which will strengthen market
oversight for residents and businesses.
The Department of Energy will receive an additional allocation to support the implementation of the Government's energy policy and the diversification of
Bermuda's energy sector, including the hiring of a R enewable Energy and Business Innovation Officer to
support Bermuda's energy transition and develop strategies for emerging industries.
Allocated funds will also be used to invest the
next generation of Bermudians through expanded bursary support for succession planning and to build technical, commercial, and policy expertise within the Department for energy transition. Capital investment will
also modernise the Land Title and R egistration Department's IT system and advance a P ilot Community Solar
Project to expand access to clean, affordable energy
for residents.

[Pause]

Take your time.

Hon. E. David Burt: Thank you, Mr. Speaker.

Ministry of Housing and Municipalities
Hon. E. David Burt: Mr. Speaker, the Ministry of Housing and Municipalities i s allocated an operational
budget of $8.2 million, an increase of 8.6 per cent ,
alongside a significantly expanded capital programme
of $32.9 million, representing a 43 per cent increase
over the previous year, which of course, Mr. Speaker,
was at that time a record investment in affordable housing.

Yes.

Hon. E. David Burt: This Budget supports the Ministry's work to advance and prepare for the implementa-tion of the Draft Affordable Housing Strategy 2025-2035.
Increased funding for the Bermuda Housing
Corporation will support the delivery of new housing units, expanded maintenance and refurbishment
works, and additional project managers to advance a
myriad of affordable housing projects. These investments will also strengthen the quality and availability of
public housing and deliver housing infrastructur e improvements in existing developments such as Cedar
Park, Mary Victoria Road, and Alexandra Road.

[Inaudible interjections and desk thumping]
Hon. E. David Burt: I'm sure the Member for [constituency] 21 wants to be included there as well.

Don’t forget [constituency] 14.

[Inaudible interjection]

Hon. E. David Burt: Over the last several months, the
Government has been developing a comprehensive affordable housing strategy while also undertaking detailed research into modern construction methods and
engaging with companies capable of delivering these
solutions, includ ing precast concrete and modular construction. Through this work, more than 30 potential sites have been identified, along with a first phase of
development that is ready to proceed and capable of
making a material impact on the I sland's housing
needs.
I want you to hear this, Mr. Speaker. Three priority sites have now been confirmed, namely the Albert
and Victoria Row housing sites owned by the Bermuda
Land Management Corporation and a vacant government -owned site adjacent to Dr. Cann Park in Southampton. Financing in the near term will be provided
through local financial institutions, supported by a government letter of guarantee for up to $90 million for the
immediate delivery of housing, Mr. Speaker.

[Crosstalk ]

Hon. E. David Burt: That covers the ministries, Mr.
Speaker. I will now move on to pension reform before I
close out today's address.

Pension Reform
Hon. E. David Burt: Mr. Speaker, last year this Government did what many said could not be done by tak-ing on the long- overdue reform of the Public Service
Superannuation Fund [PSSF]. And this G overnment
delivered it.
1870 20 February 2026 Official Hansard Report

Bermuda House of Assembly For more than a decade, the sustainability of
that Fund hung over the public purse and over the
country's finances. People talked about it . Reports
were written. Promises were made . But the hard decisions were avoided. Through the Public Service Superannuation (PSSF Stabilisation ) Amendment Act 2025,
the government acted. We stabilised the fund, and we
put the pension plan on a stronger footing for the long
term.
Mr. Speaker, this matters because the pension
promise matters. It matters to the teacher in the class-room, the nurse in the ward, and the police officer on
patrol, and the firefighter who answers the call. These
are the people who keep Bermuda running, and
whether they serve this country, and however they
serve this country, they deserve the certainty that their
pension they earned will be there.
Mr. Speaker, with the F und stabilised, the Government is now able to address the matter that public
sector retirees have raised with me repeatedly, and I'm
sure with other H onourable Members. Public service
pensions have been frozen since 2014. That is more
than a decade in which the cost of living has moved,
but pension benefits have not.
Mr. Speaker, after a lifetime of service , retirees
should not be left falling further behind. Many are living
on fixed incomes, and when prices rise year after year,
the pressure is real. This is about basic fairness and respect for those who served Bermuda.
That is why I'm pleased to announce, Mr.
Speaker, that the Government will provide a one- time
10 per cent increase for public sector retirees that will
be legislated later this year and take effect from the 1st of April 2026.
Mr. Speaker, this uplift is possible because the
Fund has been established, has been . . . sorry, the
Fund has been stabilised, and because it is now being
managed on a stronger, more responsible footing. And,
Mr. Speaker, while the Government is not yet in a position to return to automatic annual cost -of-living adjustments, because it must stay focused on improving the
funded position over time, this one- time 10 per cent increase provides real and well -deserved relief now to
those who spent their working l ives serving Bermuda.
Mr. Speaker, having dealt with the PSSF, the
Government must now turn its attention to the Contributory Pension Fund, the social insurance safety net for
every working Bermudian. The same basic truth applies, Mr. Speaker. If we want the F und to be there for
the next generation, we must face the realities in front
of us.
First, we must deal with the “retirement age. ”
Now, as you know, Mr. Speaker, there is no retirement age that is set in law. However, the commonly referred
to retirement age is the age at which someone is eligible to receive social insurance benefits, which now cur-rently stands at 65. As longevity across societies improve, systems put in place long ago must change with
it. That means that just as with the PSSF, there will be a need to gradually increase the age at which one receives social insurance benefi ts.
Second, as I have stated many times, we must
modernise the way contributions are collected. For too
long, the burden has been shared in a way that is not
fair or just. The cashier should not be paying the exact
same a month as the owner of a supermarket. Moving
towards a percent age-based approach with a suitable
cap is a more modern, progressive, and fair approach.
Mr. Speaker, the Government intends to bring
forward a position paper on the reforms in this session
as we progress towards legislating the changes. It's important to note, Mr. Speaker, because we have an open
budget process and we take into account the feedback
that has come from the business sector around these
changes. Businesses have asked for a pause on the
implementation of changes, and while the Government
understands the pressure that businesses are facing,
the longer we wait to fix the issue, the harder the issue
will be to fix. So, the Government will be measured. We
will consult, we will time implementation responsibly, but we must act. The goal is straightforward: a social
insurance system that Bermudians can rely on, that is
fair and will be there for the years to come.

Acknowledgements

Hon. E. David Burt: Mr. Speaker, before I conclude my
presentation today, I must thank the persons who made
the delivery of this long speech today a reality. Though
I serve as Premier and Minister of Finance, today I
stand here as a representative of this G overnment. And
although I deliver the speech there are so many other
unsung heroes that have done the heavy lifting,
whereas I just have to carry the budget suitcase.
I wish to give my thanks to the M inisters of this
PLP Government, some of whom I have served with
nonstop for almost nine years. I must recognise the
Honourable Members of the G overnment backbenches, whose input helped form the policies put forward by this G overnment today.
I thank the hard- working Public Service Executive, the Heads of Department, and the Ministry controllers whose work ensures that we complete the Estimates of R evenue and E xpenditure in good time.
I would also like to thank the public officers who
deliver government services to the residents of Bermuda, and to those who deliver services to the Ministers of the government. I especially remember at this
time the late Gwen Johnson, who was well known to all in this C hamber for her expertise, having drafted most
of Bermuda's recent financial services legislation, and
was here in this Chamber, Mr. Speaker, the last time
we were here in meeting. Her untimely passing leaves
a void that is hard to fill, and as a reminder , that no
matter the role that we play, all of us in public service sacrifice for the greater good.


Bermuda House of Assembly Mr. Speaker, this s peech would not be possible
without the work of the H onourable Member for Hamilton West, the Honourable Wayne Livingston Furbert.

Yes!

[Desk thumping]

Hon. E. David Burt: We have worked together on
many a budget, even when he was not in F inance.
When I needed help, I would just call Wayne. Thank you, Honourable Member, for working with me and the
team, and for filling the void sometimes left in the Ministry of Finance so ably.
Mr. Speaker, I would like to also thank the team
of the Ministry of Finance, led by the Financial Secretary, Mr. Chid Ofoego, who is with us today —

[Desk thumping]

Hon. E. David Burt: —who support s the work of the
Minister of Finance in preparing the annual budget. I
wish to extend a special thank you to the members of
the Budget Office, led by the Budget Director, Ms. Tina
Tucker, and the communications team, who have to
work late hours to make sure that the B udget is printed
and turned around on time.
[Desk thumping]
Hon. E. David Burt: Mr. Speaker, when I first moved
back to Bermuda in 2003 and started working with the
government in 2004, I remember I was at this thing and
there was a budget presentation. The people of TCD
[Transport Control Department] sent me down there.
Ms. Tucker was there as the B udget Director. While the
Ministry of Finance has seen many changes over the years, she has been a constant voice of calm under
pressure, delivering for her M inister and her country
year in and year out. Mr. Speaker, I understand that Ms.
Tucker's time of public service may be coming to an
end, and given that is the case, I ask for all of us in this
honourable Chamber to thank her for her service to
Bermuda.

Absolutely, absolutely.

[Desk thumping]

Conclusion

Hon. E. David Burt: Mr. Speaker, as I conclude this
Budget Statement, the final one I will deliver as Premier
Minister of Finance, I am struck by the scale of the jour-ney we have shared over the last nine years. Since
2017, it has been the honour of my life to serve the peo-ple of Bermuda and to lead a Government that has remained steadfast in its commitment to a stronger and
fairer country. Our journey has not been a straight line, nor
has it been without its share of trials. When this Government first took office, it set out with a clear plan to
restore Bermuda's public finances. By 2019, through
careful management and difficult choices, it had brought this country to the very cusp of a balanced
budget, within reach of the milestone that had eluded
Bermuda for a generation.
And then, Mr. Speaker, the world changed. A
global pandemic reached our shores and brought hardship and uncertainty that few could have imagined. In those dark hours, our priority was not the balance
sheet, but the lives and livelihoods of our people. Like
responsible governments everywhere, we took the decisions required to protect families, support workers,
and keep Bermuda whole. This Government did what
was necessary, and we did not hesitate.
Mr. Speaker, this Budget rests on something
that makes progress possible. One word: stability. Economic stability, fiscal discipline, and policy follow -
through. Public finance is not improved by slogans. It is
improved by sustained work over time. Over the past
nine years, whether it's myself at the helm of the Ministry of Finance, or the Honourable Member for c onstituency 21, this Government has faced real tests, a pandemic, inherited guarantee obligations from the former
Government, and external shocks. We adjusted where
we needed to do so, but we never lost sight of our mission.
There were those who suggested that the pandemic would define our future. But as the late Dr. Martin
Luther King, [Jr.] reminded us, we must accept finite
disappointment but never lose infinite hope. We did not
lose hope. We worked. We developed and executed
Bermuda's Economic Recovery Plan, and today the evidence of that work is before this Honourable House.
We have moved from pandemic uncertainty to
real fiscal strength. This Government delivered an audited budget surplus of $29 million before a single dol-lar of C orporate Income Tax was collected. We are now
using that strength to deliver the largest tax cut for workers in Bermuda's history, with some workers paying 95 per cent less payroll tax than they did when we
took office in 2017. And today, as I have announced,
this Government will repay $605 million of debt in full,
reducing gross debt by 18 per cent and cutting our annual interest costs by 20 per cent .
[Desk thumping]

Hon. E. David Burt: Mr. Speaker, Bermuda is well positioned for the future. We know that there are challenges ahead, but we also know that we have built
credibility, stability, and a clear strategy, not only in international business but as a recognised leader in digital fina nce and the innovation that will define the next
era.
Responsible choices are not always dramatic
or headline- generating. Often, they are measured.
1872 20 February 2026 Official Hansard Report

Bermuda House of Assembly Sometimes they are cautious. But over time, they protect a country's finances and expand opportunity in a
way that lasts. The decision s in this Budget to establish
a Sovereign Wealth Fund and a S tability Fund are decisions rooted in responsibility, acts of planting for a fu-ture that we may not personally inhabit but one that our
children surely will.
This success, Mr. Speaker, belongs to the people of Bermuda, those who have worked, those who
have struggled, those who have persevered, and those
who never lost belief in what this country could be. There is an old proverb, Mr. Speaker, that says , a society grows great when its people plant trees in whose
shade they shall never sit. Mr. Speaker, today this Government is planting those seeds.
As we look toward the horizon, let us do so with
confidence in the foundations that have been laid. It has
been a long road since 2017 to this moment, but we
have reached it together.
Mr. Speaker, last year our manifesto was entitled, “Building a Fairer, More Stable, and Affordable
Bermuda. ” That was not simply a slogan. It was a commitment to our people, one that this Budget delivers on
today.
Mr. Speaker, this Budget strengthens our I sland home for the years ahead by protecting stability,
expanding opportunity, and making Bermuda more affordable for working families. And it is my privilege on behalf of this P rogressive Labour Party G overnment to
commend the Estimates of Revenue and Expenditure
to this Honourable House.
Thank you, Mr. Speaker.
[Desk thumping]

And the tabling of the Bill is the G overnment Bill under the name of the Minister of Tourism and
Transport , Culture [and Sport] .
Minister.

BILL

FIRST READING

AUXILIARY BICYCLES ( PROJECT RIDE )
AMENDMENT ACT 2026

Hon. Owen Darrell: Thank you, Mr. Speaker. Mr. Speaker, I am introducing the following B ill
for its first reading so that it may be placed on the Order Paper for the next day of meeting: the Auxiliary Bicycles
(Project Ride) Amendment Act 2026.
Thank you, Mr. Speaker.

No Member wishes to speak to that, do
they?
No? We will rise to our feet, Members.
Mr. Premier, you indicated that this is your last
Budget, so in that I would just like to acknowledge the
services you have given over the years and trust that
the participation that takes place in this House over the
next few weeks will address the issues that have been
raised and that we will have an open and fair discussion
around all matters that are contained within your last Budget.
With that, the House now stands adjourned until next Friday at 10:00 am.
[Gavel]

[At 12:08 pm, the House stood adjourned until
10:00 am, Friday, 27 February 2026.]