Bermuda Budget 2022 Snapshot
Every year, Deloitte Ltd. produces a snapshot of the Bermuda Government's Budget Statement to share with clients and staff.
In the 2022/23 budget statement, Premier and Minister of Finance David Burt held to the approach of recent budgets with no major changes to the tax system or adjustments to Government expenditures. While key revenue and expenditure indicators are generally favorable to previous estimates, the Premier noted Bermuda’s “delicate financial situation” and a desire to balance the Government’s books by 2024/25, one year later than targeted in last year’s budget statement. Noting considerable work and sacrifice has been undertaken to manage Bermuda’s finances over the past two years in the midst of the global pandemic, future cuts to Government services will be required to meet the 2022/23 budget.
While international business continues to show robust growth, there are significant external pressures including OECD led global tax reform, that Bermuda and IB must navigate. The tourism and hospitality industry has faced serious challenges negatively impacting Government finances and employment figures. To support, Government plans to create policies that stimulate investment in this industry, with any plan for Bermuda’s economic recovery tied to a revitalized tourism industry. Also vital to any future economic discussion will be addressing Bermuda’s current demographic trends – including a declining birth rate and aging population - with immigration reform a key component. The Premier summarized as follows, “population growth is not simply an option for Bermuda, it is a necessity for our survival.”