Bda powerpoint economic platform sb 2 1

Economic Platform

BackgroundThe Alliance stands for a Government that is fiscally responsible:

– careful in its spending– honest in its financial reporting and – works for the betterment of our people

Background• Over the past five years Bermuda’s economy has deteriorated. A

recent survey showed that more than two thirds of business leaders expect things to get worse.

• Government continues to spend more than it raises in taxes, putting the country deeper and deeper in debt.

Background• Capital projects continue to come in substantially over budget. • There is an increasing dependence on International Business, while

Tourism continues to decline. • Government debt has exploded to $850 million in 2009.

Background• In 2010 Government has raised both taxes and the debt ceiling,

while spending even more.• Bermuda must ‘steady the ship’ if we are to continue to enjoy a

successful economy.

ProblemsThe Alliance recognizes that managing an economy is a dynamic and complex task, and that there are uncontrollable global forces which affect our destiny. However we identify the following as key contributing factors to Bermuda’s deteriorating economic situation:

ProblemsPoor Government financial planning. Government ridiculed those warning of a recession in 2008 as “…running around screaming that the ‘sky is falling’…”

ProblemsGovernment has been spending more than they

have been earning.

ProblemsBermuda’s economy is too dependent onInternational Business.

ProblemsGovernment Revenues are toodependent on Customs and Payroll Tax.

ProblemsOur tax system hits lowerIncome workers harder.

Our Plan The Alliance believes:

Government must make a commitment to spend less than they earn, and commit to a 5 year plan that pays down our massive debt.

Our PlanCurrent Debt Levels vs. Ministry Budgets

Our Plan• Government must use sound judgment in spending and be

transparent in decision making. • Government must encourage economic activity by promoting new

industries and working with existing ones.• Government must look for new and innovative ways to raise income. • Government should review its tax policy to give relief to those with

low incomes.

Summary• After incurring more debt in the last 5 years than the previous 395,

the current Government’s profligate and irresponsible spending has mortgaged the future of generations of Bermudians.

• Bermuda’s reputation as a financially sound and fiscally prudent jurisdiction is in serious jeopardy.

Summary• The Bermuda Democratic Alliance understands the

important role that Government has to play in managing our economy. We believe that the strategies discussed in this platform will lay a solid foundation for Bermuda to build a stronger and more fiscally conservative future.