FRIDAY, FEBRUARY 18: Deloitte Bermuda has offered an analysis of Paula Cox’s first Budget as Premier — saying public debt is $1.175 billion.

The company looked at the highlights of the Budget and said the total revenue of $940 million for 2011/2012 is four per cent lower than last year’s estimate of $977 million.

The estimate of total expenditures is $1.08 billion, including $84.2 million of capital expenditures, $70 million of interest payments and $25.8 million of sinking fund contribution.

It represents a 16 per cent decrease in expenditures from the 2010/2011 revised estimates of $1.2 billion.

The current year deficit is estimated at $146.6 million and the revised deficit estimate for 2010/2011 is $223.8 million.

Actual deficits for 2009/2010, 2008/2009 and 2007/2008 were $208.7 million, $241.4 million and $136.4 million respectively.

The five-year estimated and actual deficits total $956.9 million.

Concerning public debt, Deloitte’s statement said: “The statutory debt ceiling remains at $1.25 billion.

“In 2011/2012, including debt and guarantees, public debt is estimated at $1.29 billion, which exceeds the statutory debt ceiling by $40 million.

“However, in the current year Government has excluded $210.5 million of guarantees to bring the 2011/2012 estimated public debt total to $1.08 billion.

“Including guarantees, public debt in 2010/2011, 2009/2010 and 2008/2009 was $1.175 billion, $970 million and $483 million respectively.”

Last year’s two per cent increase on payroll tax was abolished, pushing tax back to 14 per cent.

The salary cap will remain at $750,000.

With Government spending, an estimated current year deficit reduction of 35 per cent from 2010/2011 to 2011/2012 will be achieved with no cuts to established Government jobs.

But vacant positions will remain unfilled, temporary posts will be abolished where possible and overtime will be sharply reduced.