Newfoundland and Labrador Budget Report 2015

“BALANCING CHOICES FOR A PROMISING FUTURE”

On April 30, 2015, the Honourable Ross Wiseman, Minister of Finance and President of Treasury Board, tabled his first budget. The province’s finances have been heavily hit by the steep drop in oil prices and certain mineral prices. The fallout is higher deficits and a delay in the expected return to a balanced budget. In an effort to tackle the deficit, the budget proposes tax increases and spending cuts, and this all comes in an election year.

The deficit reported for 2014-15 is $924 million, which is a significant increase from last year’s forecast of $538 million. Last year, the government had predicted a surplus for 2015-16. However, a deficit of $1.1 billion is now forecast largely due to the decrease in oil revenues. The government is not predicting a balanced budget until 2020-21 with an assumption that the price of oil will reach $90 a barrel.

Highlights

• Deficit of $924 million projected for 2014-15
• Deficit of $1.1 billion forecast for 2015-16
• Personal tax increases for individuals earning more than $125,000
• HST to increase by 2% on January 1, 2016

Download our full budget report