The 2026/27 Budget Statement, delivered by Premier and Minister of Finance David Burt on 20 February 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 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:
- Stabilisation Fund – to provide a financial buffer by saving during strong years and cushioning economic downturns.
- Sinking Fund – to ensure structured debt repayment and reduce refinancing risk.
- Sovereign Wealth Fund – to invest for long-term returns and build national wealth over time.
The budget reflects a strategy focused on fiscal resilience, historic debt reduction, investment in national infrastructure, and meaningful tax relief for workers and employers.
Key measures announced include:
- Cost of living relief: Payroll tax cuts, lower electricity costs, reduced duty on essential goods, and a further 10% reduction in vehicle licensing fees.
- Debt reduction: Full repayment of the $605 million senior notes maturing in January 2027, representing the largest debt reduction in Bermuda's history.
- Healthcare: $87 million allocated to the Bermuda Hospitals Board to advance Universal Health Coverage, plus $14 million carried forward to expand HIP and FutureCare services.
- Infrastructure: $9.4 million for the Swing Bridge, $8.8 million for the Tynes Bay expansion, $26.9 million for the Bermuda Housing Corporation, and $14 million to upgrade facilities at public schools and Bermuda College. The budget also funds new buses, road and wall repairs, and other safety and sustainability measures.
- Seniors: A $15 million expansion of FutureCare subsidies for low-income seniors, an increase in the Financial Assistance pensioner threshold from $500 to $800, and payroll tax exemptions for Bermudians aged 65 and over on the first $96,000 of earnings.
Following the Premier's statement, KPMG in Bermuda has prepared a budget snapshot highlighting the key announcements.
Access the KPMG Budget Snapshot.
Access the full 2026/27 Bermuda Budget.
