NFLD & Labrador Deficit $1.8 Billion
CBJ — The provincial deficit for Newfoundland and Labrador is expected to be about just north of $1.8 billion this fiscal year.
The projection was made by the provincial government in the release of the budget, and if accurate would represent a $300 million improvement from the last projection in July.
Provincial net debt is expected to reach $16.4 billion, or about $31,000 per person in the province according to Finance Minister Siobhan Coady.
The provincial budget does not factor in the federal government’s recent announcement of $320 million to help the province’s struggling offshore oil sector.Offshore oil royalties account for 7.5% of provincial revenues in this year’s budget, using a forecasted oil price of $39 per barrel.
The budget was the first delivered by the Liberal minority government since Andrew Furey became Liberal leader and premier in August. Furey has not yet been elected to the Newfoundland and Labrador legislature, but is running in a byelection in the Humber-Gros Morne district. There will be a provincial election some time before August 2021.