Leaders in the international business sector broadly welcomed the Budget.

At the same time, the private sector was told it needed to do more to support Bermuda’s efforts to attract more international business to the island.

Arthur Wightman, PwC Bermuda leader, said the lowering of the GDP growth estimate “underscored the fragility of the island’s sustainability and the urgent need to stimulate and diversify the economy”.

He said: “This Budget showed an emboldening towards viewing foreign investment as a catalyst to growth and stability as well as a pathway to income equality across the island. This was particularly evident in requiring 40 per cent rather than 60 per cent Bermudian ownership in order to operate in the domestic economy.”

Mr Wightman noted that growth, fiscal discipline, entrepreneurship and income equality all featured strongly in the Budget.

“As well as a keen understanding that for now Bermuda is still deeply reliant on international business,” he said.

“A reliance that compounds the need to welcome foreign investment and for the entire community to ensure that Bermuda is always perceived as a great place to do business. The Premier summed this up well when he said ‘In a global economy enabled by technology, money observes no artificial barriers; it moves where it is wanted and where it can earn a decent return’.”

The Bermuda Government has earmarked an additional $1 million of funding for the Bermuda Business Development Agency.

David Burt, the Premier and Minister of Finance, pointed out that the BDA is a public-private partnership conceived under the previous Progressive Labour Party government. He said: “Although this is a partnership, last year the Government grant accounted for 88 per cent of the BDA’s funding.”

The Premier added: “This cannot be a true partnership if the Government is footing the bill and industry is not playing its part. If we are to be successful, industry must match the Government’s commitment to the BDA.

“Collectively we must do more to market and sell Bermuda overseas, and therefore the Government has earmarked an additional $1 million, which will be used to match private-sector contributions to the BDA.”

Ross Webber, chief executive of the BDA, said he was pleased by the gesture, adding: “I echo the Premier’s comments on achieving a better balance in the ratio of government to private-sector funding for the BDA. We certainly encourage Bermuda’s corporate stakeholders to help fund the agency so we can further our programmes to retain and grow jobs on the island.”

Mr Webber said he was grateful to those who give financial support to the BDA, and mentioned that a PwC study has been commissioned to measure and explain the impact the BDA has on Bermuda’s economy.

He said: “Funding is critical to our success in regenerating Bermuda’s economy, which every one of us has a stake in. We urge new corporate stakeholders to start contributing to the BDA, and existing companies to increase their financial support of the agency.”

Mr Webber called the Budget “prudent and enterprising”.

He said: “As the Premier noted, the theme throughout is growth, something our agency dedicates effort here and abroad to achieving in our economy.

“We welcome the fact payroll tax is not increased; for Bermuda’s international companies, it means they aren’t penalised for having a physical presence and keeping their mind and management on the ground here — something that distinguishes our market.

“Prudential and careful amendment to the policy relating to 60:40 ownership and control may well prove to be enlightened. This ought to spur greater investment. The Budget’s emphasis on deficit reduction is of course important for the whole country.”