Consolidated Fund Statements Tabled

February 17, 2012

Premier Paula Cox today [Feb.17] tabled audited financial statements relating to the Consolidated Fund.

Speaking on the delay, the Premier said “The delay in issuing the Consolidated Fund Financial Statements for 2011 is not an ideal situation and the Accountant General and her staff will work intensely with the Office of the Auditor General to provide the audited Accounts of the Consolidated Fund in a timelier basis.”

The Auditor General included an explanatory paragraph to draw attention to the “increased incidents of non-compliance.”

Revenue was $996.7 million while Current Expense for 2010/11 was $1.27 billion The total revenue raised for fiscal 2010/11 of $996.7 million was lower than original budget estimates by approximately $62.1 million [5.9%].

The most significant generators of revenues for fiscal 2010/11 were Payroll Taxes accounting for $423.0 million [42.4%] and Customs Duty accounting for $195.8 million [18.5%].

The three largest components of current expenses were: employee costs; grants and contributions; and professional services. Total employee costs were $599.7 million, or 47.1% of total expenses.

The report said that Expenditures were above budget in 2010-2011 primarily due to the following items:

  • Above budget expenditure on substitute and para-professional’s salaries – $5 million
  • Increased expenditure on Government’s health subsidy programme – $35 million;
  • Interest on long-term debt – $18
  • Increase expenditure for Financial Assistance and Child Day Care Allowance – $9 million
  • Additional expenditure on the War Veterans Programme – $5 million

Net Public Debt, which excludes guarantees and is net of the Sinking Fund, increased by $243.0 million during fiscal 2010/11 standing at $1.0 billion at the end of the year. This represents a 32% increase from fiscal 2009/2010.

The full statement issued by Government follows below:

Premier and Minister of Finance, the Hon. Paula A. Cox, JP, MP today tabled audited financial statements relating to the Consolidated Fund for the year-ended March 31, 2011.

The Consolidated Fund is the general operating fund of the Bermuda Government through which Government conducts the majority of its financial transactions.
The Consolidated Fund financial statements report the operations, financial position and changes in financial position that result from the activities of the Government. This includes the accounts of the Senate, the House of Assembly, all Government departments and offices and all courts.

For the fourth consecutive year, the annual accounts of the Consolidated Fund of the Government of Bermuda were given a qualified audit opinion. The qualification in this and the prior year was based on the Auditor General’s opinion that there were serious deficiencies in internal controls in the management of certain capital development projects.

The general public should note that the detailed reasons for the qualification on the accounts will be included in the Auditor-General’s Annual Report for 2011 when it is tabled.

Subsequent to the tabling of the Auditor-General’s Annual Report for 2011 normal Parliamentary procedures would be followed:

  • The report referred to the Public Accounts Committee for review;
  • The Committee tabling its report with recommendations;
  • The Minister of Finance issuing a formal response, in writing, on behalf of the Government.

Where individual Ministry practices are queried, the relevant Ministers will separately provide information by way of Ministerial Statements and other documentation.

Premier Cox said, “The Government recognizes that the Auditor General’s recommendations provide the opportunity to refine and enhance Government processes. The Government will work with the Auditor General and take the required steps to ensure that this qualification is removed in the future, in the same manner we did when actions were taken on qualified accounts in 2000 and on other previous occasions”.

The Auditor General has, for the first time, included an explanatory paragraph as an ‘other matter’ which discusses the increased incidents of non-compliance with the Government of Bermuda’s Financial Instructions. This ‘other matter’ does not form the basis of the qualification of the Auditor General’s opinion.

Premier Cox stated “That as Minister of Finance, I have spent a considerable amount of my time fighting for Bermuda’s credibility around the world, and we have made good progress. The introduction of the Good Governance Bill in July 2111 underscores our commitment to enact measures geared to strengthen financial accountability in Government and to enhance our governance framework.

“We wish to communicate a strong and clear message to the public that Government has zero tolerance for behavior and practices that do not accord with the highest standards of good governance.

“Also the establishment of the Office of Project Management and Procurement will facilitate the adoption of consistent practice for the procurement of goods and services, and the management of major projects for all areas of the Government of Bermuda. The benefits include developing consistent policies and processes and obtaining the best value for money for the Government of Bermuda.”

The Government understands the importance of timely financial information. As the Minister of Finance I consider it essential that all Government entities have their annual financial statements prepared and audited within six months of year-end. The delay in issuing the Consolidated Fund Financial Statements for 2011 is not an ideal situation and the Accountant General and her staff will work intensely with the Office of the Auditor General to provide the audited Accounts of the Consolidated Fund in a timelier basis.

It is important to note that when the 2010/11 budget estimates were made in February 2010, it was against the background of an array of very challenging economic and financial circumstances. Following the financial crisis that swept the world beginning in 2008, the broad consensus of economists and policymakers was that the global economy was again expanding. However at this juncture, the National Economy of Bermuda was still struggling to overcome the adverse effects of the recession.

In 2010, the Bermuda economy contracted by 0.7 per cent measured in current market prices, when adjusted for inflation, the level of economic activity or real GDP decreased by 1.9 per cent. Employment fell by 3.6 per cent and the official unemployment rate was 6.0 per cent in accordance with the 2010 Census. Total employment continued to shrink at a decelerating pace in 2011. Several of the major economic indicators such as air visitor arrivals, construction activity and retail sales declined in 2010.

Going into fiscal year 2010_11 the Government’s fiscal position had been significantly weaken by the ongoing recession.

The revenue out-turn for 2010 was projected to be below 2009 and without tax increases the revenue for 2010-11 was expected to contract further.

Additional current account expenditures had to be absorbed by the Consolidated Fund in 2010-11 which represented – interest on long-term debt (which was paid from the Sinking Fund in 2009_10) and additional expenses for drug treatment (which had been paid from the Confiscated Assets Fund)

In the Government’s view, with the fundamentally weak fiscal position, it was important to support public sector spending in support of the long-term health of the economy and in order to pay for the increased public services desired by the public; accordingly the Government strengthened its tax base by increasing various taxes.

The Government increased payroll tax, foreign currency purchase tax, stamp duty on estates, vehicle licensing fees and the biennial review of government fees. The result of these actions was a $78.6 million increase in revenues when compared to 2010.

But equally important is that the tax increases helped Government maintain critical services for the poor and vulnerable of our society whose reliance on the Government increases in times of crisis. The welfare of our people must never be neglected.

When scrutinizing the Consolidated Fund Financial Statements for 2011 it is important that the above-mentioned circumstances be considered.

Financial highlights of the Consolidated Fund Financial Statements 2011 are as follows:

  • The total revenue raised by the Consolidated Fund for fiscal 2010/11 was approximately $996.7 million, representing an increase of $78.7 million (8.6%) from fiscal 2009/10 for which balances have been restated. The primary reason for the increase was due to increases in rates for payroll tax, foreign currency purchase tax, stamp duty on estates, vehicle licensing fees and the biennial review of government fees. This was lower than original budget estimates by approximately $62.1 million (5.9%). The most significant generators of revenues for fiscal 2010/11 were Payroll Taxes accounting for $423.0 million or 42.4% (2010 – $349.0 million or 38.1%) and Customs Duty accounting for $195.8 million or 18.5% (2010 – $219.0 million or 19.6%). Revenues were below budget in 2010-2011 mainly due to shortfalls in Customs Duty ($36.7 million below), Stamp Duty ($10.0 million below), Immigration Receipts ($6.7 million below), International Companies Fees ($6.4 million below) and Payroll Tax and Foreign Currency Purchase tax that were both ($4 million below).
  • Current expenses for fiscal 2010/11 were $1.273 billion (2009 – $1.177 billion). The three largest components of current expenses were: employee costs; grants and contributions; and professional services. Total employee costs were $599.7 million or 47.1% of total expenses (2010 – $577.4 million or 49.0%). Included in this amount is $151.6 million (2010 – $143.7 million) of non-cash retirement benefit expenses. Grants and contributions were $277.1 million or 21.8% (2010 – $261.1 million or 22.2%) and professional services were $119.1 million or 9.4% (2010 – $111.9 million or 9.5%). Interest on long term debt was $58.7 million or 4.6% (2010 – $35.1 or 3.0%). Total current expenditure on a modified cash basis, which are shown on Schedule 15, were $1.124 billion, which was $65.8 (6.2%) million higher than original budget estimates of $1.058 million.

Expenditures were above budget in 2010-2011 primarily due to the following items:

  • above budget expenditure on substitute and para-professional’s salaries – $5 million;
  • increased expenditure on Government’s health subsidy programme for the youth, aged and indigent – $35 million;
  • Interest on long-term debt – $18;
  • Increase expenditure for Financial Assistance and Child Day Care Allowance – $9 million;
  • Additional expenditure on the War Veterans Programme – $5 million.

Premier Cox stated that financial payments for professional services are often confused with payments to overseas consultants. For clarity, she explained this expenditure of $119.1 covered all government contracts including cleaning, security, legal aid, Works and Engineering maintenance, contracted services for the Department of Airport Operations, health insurance portability claims, war pensioner medical claims and other ‘locally’ contracted services.

Total capital account cash expenditure was $120.5 million, which was $23 million lower than the original budget estimates. Capital development expenditure was $17 million below original budget while capital acquisitions were $7 million below original budget.

A further look reveals the closing closing Net Book Value of Tangible Capital Assets for the year was $727.7 million, an increase of $127 million over the 2010 value of $600.4 million. Included in the net additions of $169.6 million (2010 – $36 million) was a net transfer of $113.9 million from Assets under Construction for 2010/11. This was primarily due to the completion of the Magistrates Court Building.

Net Public Debt, which excludes guarantees and is net of the Sinking Fund, increased by $243.0 million (2010 – $276.8 million) during fiscal 2010/11 standing at $1.0 billion at the end of the year. This represents a 32% increase from fiscal 2009/2010.

The escalation was mainly due to the Government issuing a public bond offering in the international debt capital markets authorizing the issue and sale of a very successful $500 million 10-year, fixed rate bonds priced at par. The coupon and yield of the bonds are 5.60% per annum.

The proceeds of this issue was used to repay the amounts outstanding a maturing $200 million credit facility, repay short-term indebtedness with local banks which totaled approximately $140 million and to fund capital expenditure programs and for other budgeted governmental purposes.

While many countries saw their ability to raise funds curtailed in 2010, Bermuda had the opposite experience, finding a receptive audience for its first offering in the public bond market.

The actual net debt to GDP ratio at March 31, 2010 was about 17.4 %.
It is relevant to note that despite recent increases in debt levels the level of public debt as a percentage of GDP is still moderate when compared to other countries and remains one of the lowest, debt policy ratios amongst developed modern economies.

During 2010/11 $25,750,000 was contributed to the Sinking Fund.

The fiscal 2010/11 actuarial valuations resulted in a net liability for pensions and retirement benefits of $1.05 billion, representing a 11.7% increase from fiscal 2009/10. The majority of this liability relates to the Public Service Superannuation Fund (PSSF).

The public may be aware that the Government has already started to address the inherited problems associated with the PSSF. Based on actuarial advice, commencing in 2006, PSSF contribution rates were increased from 5% to 8% and 9.5% for regular members and uniformed officers respectively. This was part of a funding strategy to place the PSSF on a more stable financial footing and to attend to some longstanding PSSF specific issues that have had a significant impact on the financial position of the PSSF.

The increase in pension contributions was only the first step in fixing this inherited problem and Government must still address the unfunded liability incurred from prior non-contributory service and prior inadequate contributions.

This Government’s policy has been to reduce the inherited unfunded liability through a series of special contributions and a sound investment strategy that best meets the PSSF’s financial objectives. Going forward we will continue this policy in a manner which is responsible, transparent and fair.

I wish to assure current and future pensioners and the general Bermuda population that the Government is sensitive to the challenges facing pension plans of this nature and will continue to monitor the financial position of the Fund to ensure that the Fund remains viable in the long-term.

The statements of the Consolidated Fund provide valuable information on the financial position of the Government and the public is encouraged to examine them.
There is no doubt that the global recession is having a negative impact on Government finances worldwide and Bermuda is not unique in facing the economic challenges that are being faced globally.

“I wish to assure the public that the Government is sensitive to the challenges which may arise when deficits reach short term peaks, however the Government is moving ahead with a credible plan for medium-term fiscal consolidation in order to reduce public debt and to keep the country on a sustainable fiscal path,” Premier Cox concluded.

-

The 63-page report is below [PDF here], click ‘Fullscreen’ for greater clarity:

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Comments (55)

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  1. Educated Fools says:

    More than 60% of revenue going to gov workers… appalling. It seems clear to me if they reduce Gov workers by 40% and only half of them are placed in the private sector they might actually turn a profit.

    • d-reader says:

      Total employee costs were $599.7 million, or 47.1% of total expenses.

      reading is fundamental

      R I F

      • Family Man says:

        Employee costs were $599.7 million and revenues were $996.7 million which is 60.16% of revenues as correctly pointed out by Educated Fools.

        As you say, reading is fundamental. And comprehension is essential.

        • Yup says:

          Bermuda is going down. And if the voters don’t vote in CHANGE then Bermuda will die.

      • observer says:

        D-reader, every comment is strictly to protect your disfuctional government. Please be honest with yourself!!

      • Rick Rock says:

        I love it when one of you PLP idiots comes on and shows what a complete moron you are.

        • d-reader says:

          2/17/2012 5:02:00 PM
          Nearly half of Government’s budget goes to payroll

          Raymond Hainey
          Senior Reporter

          FRIDAY, FEB. 17: Nearly half of Government’s expenses for the last financial year were staff costs, the latest set of accounts revealed today.

          Employee expenses amounted to nearly $600 million – 47.1 per cent of total expenses – for the year ending in March, 2011, up $23 million from the previous year.

          a guess the bermuda sun publishies idiotic lies also?

          • Mad Dawg says:

            D-Reader,
            over 60% of revenues went on staff costs for government workers. That will be true no matter how many times you attempt to say something different.

            You might want to reflect on the difference between the word “revenues” and the word “expenses”.
            Then you might want to take your own advice about how “reading is fundamental”.

            • Paul says:

              Thanks. Was just about to chime in with the same point. The moral of the story: don’t make asinine remarks about people needing to learn to read when it would appear that your own skills of comprehension are sorely lacking, and when you don’t seem to understand the distinction between ‘revenues’ and ‘expenses’. Seems to me like a pretty easy distinction to grasp but, hey…………

              • Mad Dawg says:

                As Rick says, it is amusing when D-Reader comes on again and again to reconfirm that he has no idea what he’s talking about.

        • d-reader says:

          Nalton Brangman

          Prepare yourselves for the Budget of 2012. A note for you to consider. We have a budget that now spends almost 50% on salaries

          guess he is a plp idiot also

          • observer says:

            Why is it so HIGH?!?! Because the PLP kept hiring. Majority do nothing all day. majority of the time when you drive by you would see one working slowly and four looking at the one that is working slowly. Bad management and supervisery staff that also allow it to happen at the counties expense. After the election, whoever is in power will have to reduce the staff to save the country. The welfare is cheaper then their pay, for they don’t produce anyway.

            • d-reader says:

              and where will all the unemployed persons go mate?
              should they take an expat job or just stay home watching tv?

  2. Serious though says:

    Interest on long-term debt – $18
    Increase expenditure for Financial Assistance and Child Day Care Allowance – $9 million

    Debt: $ 49316 A DAY
    child care Financial Assist. Around 24500 a day!

    Seriously !

    • Wandering says:

      I think a review has to be made on the Child Day Care Allowance as I have heard about people who have applied and been accepted who are more than able to pay the full cost and others that have applied who are making mimium wage and been tod that they make to much money… Sooo who is it that decides to is/isn’t accepted. I know of one person who is unemployed due to health reasons, the husband is the only able bodied person, whose finances are stretched and they be turned down for CCF because they make to much money…

  3. Soooo says:

    Borrow, borrow, borrow!!!!

    • Laughing at the Cog says:

      From who? From who? From who?

      Not Butterfield, not HSBC… gonna issue more debt? That would be the last nail in the coffin when they have to pay 8%!

      • Yup says:

        Whatcha gonna do??? We’re gonna raid the pension fund fer you!!! Bad boys bad boys, whatcha gonna do?? Gonna bleed Bermuda dry and stick it to you.

  4. Mad Dawg says:

    They’ve been running deficits now for 6 solid years. They’re spending more than $276million more per year than they get in. Debt is $1.27bn (as at a year ago) and at this rate will be $2bn by 2014.

    And she starts off the whole announcement saying that the delay getting these numbers out and the qualified audit is ‘not an ideal situation’.

    “Not ideal”? No it freakin isn’t.

  5. Family Man says:

    The Auditor General included an explanatory paragraph to draw attention to the “increased incidents of non-compliance.”

    So much for “re-setting the dial”. It’s business as usual.

    • Yup says:

      PLP are a world unto their own. PLP do whatever they want to ensure their elite do well. The hell with Bermuda. By the time Bermuda dies, PLP elite will be off island enjoying the good life.

  6. Rummy says:

    Vote PLP. All the way.
    Next stop, Turks and Couscous.

  7. Our future says:

    Debt like this should only be created when the economy is in a depression. and should be removed by taxation during a over-heating. this would both null-en-void the side affects of a depression or over-heating. This is the only exceptionable reasons for debt creation.

    To an economy debt is like a drug. We as a country are now addicted to this debt in the sense that everyone now expects so much government spending to be a part of our economy. If this debt were to be removed it would cause panic and hysteria. Thus would cause a significant depression because the money the government used to spend, businesses started to rely and plan for now does not exist.

    This debt should have never been started. Live with in your means applies to both the small and the big.

    Pardon my spelling. I am just and Engineer lol

  8. 32n64w says:

    PLP – taking more and more (for themselves) leaving taxpayers with less and less since 1998.

    • PEPPER says:

      And 32, the present gov have been allowed to get away with this crap ….and the ordinary people have been asked to do more with less !!!!only in bda.

      • Wandering says:

        Well Pepper – you now know what you have to do…. X press yourself in the Voter’s booth.

  9. Paul says:

    Cut the flippin day care and leave the workers salary and pension alone.

  10. Cancer says:

    I don’t know whether to laff at PLP supporters or cry for them!

  11. Sandgrownan says:

    When do I get license fee to own property back?

    …crickets….

  12. Big Dog says:

    More gross incompetence from the PLP. Why would we be surprised. This PLP tiger doesn’t change its stripes. Ignore the overspend and press on with more debt with no controls. How sad and how predictable.

    When are they ever going to show they are capable of running our country other than into the ground? Sorry, don’t answer that I know the answer. NEVER.

    • PEPPER says:

      Big dog, the cog is is huge failure… she has no clue to what she is doing….and else for insane de silva, I bet if you and your family members have a serious health problem…you all will be out on the next exit out of bda !!!
      KEMH is a disgusting place to go for our health care…..more to come about this….

  13. Larry Burchall says:

    Taking a closer look at the figures in the Statements of the Consolidated Fund, this is what shows up:

    (A) The 2010/11 overspend was actually $311m, not the $276m touted. The real numbers are neatly assembled on page 5 of the Statements. They show:
    Expenses, Current ($1,272,650,610)
    Capital Development ($ 31,647,283)
    Capital Acquisition ($ 4,215,873)
    Total Spending ($1,308,513,766)

    Revenue $ 996,728,405
    Total deficit/overspend ($ 311,785,361)

    (B) Page 59 of the Statements shows Public Debt. Page 35 reports the $200m loan taken up in May 2011. The final tally for Public Debt shows this:

    Gross Public Debt $1,030,000,000
    Overdraft facility at 31 Mar 11 $ 57,490,260

    Gross Public Debt 31 Mar 11 $1,087,490,260
    Less Sinking Fund 31 Mar 11 ($ 85,508,498)
    Net Public Debt at 31 Mar 11 $1,001,981,762
    Add new Debt taken up 18 May 2011: $ 200,000,000
    Net Public Debt at 30 Sep 2011 $1,201,981,762
    (Plus any increased take-up in the $100m Overdraft facility since 31 March 2011)

    Debt Limit is $1,250,000,000. Available now is $48,018,238.

    (C) Page 43 shows Personnel costs as $599,745,003. Page 42 shows Revenue as $996,728,405. In 2010/11, 60 per cent of revenue was being spent on personnel.

    After Personnel costs were met, only $397m was left over and available for everything else. However, a total of $1,308m was spent. So a total of $397m + $311m was spent on everything else.

    $397 + $311 = $708m spent on everything else + $600m spent on personnel = $1,308m spent altogether. Of the $1,308m that was spent, $311 has to be borrowed.

    • Understanding says:

      Larry,

      Your figures are wrong. You shoudl know full well there is a difference between “Expenses” (and accounting term that includes things like depreciation) and “Expenditure” (which represents the actual money spent).

      To use accrual accounting lines, which don’t reflect actual money spent, is misleading and you should know better!

      Debt increased by $243 million last year, not $311 million. Lets be honest with the figures.

      • blankman says:

        Sorry but Larry is right. And he didn’t begin to comment on the rest of the statement [the pension funding shortfall is “humourous” to say the least, especially since it’s calculated using a nonsensical interest rate (Note 9).

        • Rockfish#1and#2 says:

          Larry,
          If the Defender/8 votes attacks you, take it as a compliment because it means you are probably correct!

        • Yup says:

          Larry don’t play!!!!!

  14. Hmmmm says:

    Pathetic PLP, they are clueless. Get them out. This is appauling management.

  15. Cancer says:

    Poor PLP or should I say poor Bermuda? Actually it’s poor broke Bermuda ! Get this damm party out please!

  16. 32n64w says:

    Amazing how the PLP defenders go radio silent when confronted with facts and figures.

    Reality has an anti-PLP bias.

    • Understanding says:

      Why would anyone need to defend the facts? Governement revenues were less than exepnditure. Your point?

      • so-n-so says:

        your point seems to be that you think spending more than what is coming in is good money management.

        all you blind followers need to go up to de college and enroll in economics 101

      • Rick Rock says:

        The point is that Ewart and Cog have made a complete freakin mess of it. Ewart doesn’t give a rats about it, he’s got his 50 mill, and Cog has no idea what to do about it other than reverse every Ewart / Burch policy she can think of. Oh yeah, and her other brilliant long-term plan of ceasing to pay pension contributions.

        Can’t wait for the slogans and bs in the budget. Remember 2010? In her budget speech that year she called it the “Year of Recovery” . Last year she was “Resetting the Dial”. What’s this year going to be? “Let’s all pull together” or some stupid slogan like that? Now that she’s screwed everything up she’ll want everyone to help? After they’ve spent the past 14 years telling us “we don’t care what you think”?

        • PEPPER says:

          Paula, sure did not inherit her fathers principles, and integrity.

    • star man says:

      I guess the clowns can’t shoot the messenger this time either! Cuz it’s Paula!! BWAA-HA-HA-Ha!!

  17. @Work says:

    We poor and in debt up to our eyeballs. 26,000 or so working Bermudians, think about it.

  18. navin johnson says:

    The layers of the onion are being peeled away revealing the depth that our economy has sunk to….it will be like pulling teeth to see just how bad it is but people now seem to be waking up to the reality that we are broke…hundreds of people without power as they cannot pay their Belco bill….salvation army seeing big surge in people looking for food…thank you PLP Government…..now please off you go to Ghana, St.Kitts, Martha’s Vineyard,New York and god knows where else you have built homes while we are in danger of loosing ours….

  19. Cancer says:

    Obviously “Understanding” doesn’t understand – blind loyalist follower for sure.

  20. according to SocGen says:

    Societe Generale says ‘now is the time to invest in Cayman real estate’.

  21. Larry Burchall says:

    “Debt increased by $243 million last year, not $311 million. Lets be honest with the figures.”

    That was the criticism and answer supplied by ”Understanding”. It illustrates, very clearly, what the core problem is. It is a failure, a very clear failure, to understand the importance of numeric relationships.

    Fact – and we’ll all agree on this. Revenue is reported by the Auditor-General to be $996.7m for 2010/11.

    So if Debt increased by (only) $243 million last year – instead of $311 million; then Debt increase relative to revenue was 24.38 percent. That means that overspending – and “Understanding” shouts out this point – was at a rate of $1.24 actually spent for every $1.00 taken in. Or, for every $1,000,000 in revenue, Government actually spent $1,243,800.

    The “expense” though was $1.31 for every dollar taken in.

    The lower figure of $1.24 is too much. Way too much. This kind of spending imbalance has been going on since 1st April 2004. This kind of spending never happened under the regime of the first PLP Finance Minister. He exercised good control. The PLP’s first five years of governance are characterized by generally sound financial management and good controls.

    Now with Debt standing at $1,201,981,762 as at 30th September 2011, people like “Understanding” cry that we “only overspent by $243 million” not by $311 million. [See page 59 and then add the $200 million from page 35, paragraph 20, Note (b)]

    My friend, we’re so deep in the doo-doo of Debt that arcane arguments about the meaning of accounting words like “expense” and “spend” are moronic, wasteful, and pointless.

    EXCEPT that this kind of rebuttal shows the collective mindset that allowed Debt to mushroom from $119 million at 31 March 2004 to $1,202 million at 30 September 2011; and that took annual Debt service costs from $11.4 million in 2004 to $100.2 million in 2011.

    “Understanding”, thanks. You’ve taught me so much. Again, thanks.

    Larry

    • PEPPER says:

      Larry, you should be the finace minister of bda,you make it so clear to us and break it down in language that we all can understand… thank you so much for your input….

    • The road to hell says:

      Larry I’ve followed your posts and columns across Bermuda and have to say that here is a guy who know how it is and speaks a language everyone can understand.

      You should be an independent policeman for the BDA Govt Finance Ministry, and remove the chequebook from Paula and her cohorts.

      It’s scary that if everyone reading this story was doing the same, i.e. spending way more than they earn for more than 5 years, on a personal level you would be bankrupt…..

      Yet your ministers still take their money and pat themselves on the back for a job well done without criticism or any real accountability.

      Wake up Bermuda – you’re being raided by un-masked robbers

  22. Jim Bean says:

    we are sunk