The 2026/27 Budget Statement, delivered by Premier and Minister of Finance David Burt on February 20, 2026, underscores a markedly improved fiscal outlook for Bermuda. This is the first budget fully shaped by the successful implementation of the Corporate Income Tax (“CIT”), with at least 70% of net CIT revenue to be dedicated to paying debt interest, reducing net debt, and building financial assets over a rolling three-year period.
To support this approach, the Government is establishing three key funds: a Stabilisation Fund to provide a financial buffer by saving in strong years and cushioning downturns; a Sinking Fund to ensure structured debt repayment to reduce refinancing risk; and a Sovereign Wealth Fund to invest for long-term returns and build national wealth over time.
The budget reflects a strategy grounded in fiscal resilience, historic debt reduction, investment in national infrastructure, and meaningful tax relief for workers and employers.
- Cost of living relief: Payroll tax cuts, lower electricity costs, reduced duty on essential goods, and a further 10% cut to vehicle licensing fees;
- Debt reduction: Full repayment of the $605m senior notes maturing in January 2027, representing the single largest debt reduction in Bermuda’s history;
- Healthcare: $87m for the Bermuda Hospitals Board to advance Universal Health Coverage, plus $14m carried forward to expand HIP and FutureCare services;
- Infrastructure: The Budget provides $9.4m for the Swing Bridge, $8.8m for Tynes Bay expansion, $26.9m for the Bermuda Housing Corporation, and $14m to upgrade facilities at public schools and the Bermuda College. It also funds new buses, road and wall repairs, and other safety and sustainability measures;
- Seniors: A $15m expansion of FutureCare subsidies for low-income seniors, higher Financial Assistance pensioner thresholds (from $500 to $800), and payroll tax exemptions for Bermudians aged 65+ on the first $96k of earnings.
Following the Premier’s statement, KPMG in Bermuda provides the budget snapshot below:
