Newfoundland and Labrador Budget Report 2016

“RESTORING FISCAL CONFIDENCE AND ACCOUNTABILITY”

On April 14, 2016, the Honourable Cathy Bennett, Minister of Finance and President of Treasury Board, tabled her first budget. With the drastic decline in oil revenues and a significant deficit, this budget outlines a plan to deal with the province’s economic difficulties. The plan includes tax increases and spending cuts. A supplementary budget is expected this fall to deal with a longer term plan.

The deficit reported for 2015-16 is $2.2 billion, double last year’s forecast of $1.09 billion. The deficit for 2016-17 is forecast to be $1.83 billion. The government is not predicting a surplus until 2022-23.

Highlights

• Deficit of $2.2 billion projected for 2015-16
• Deficit of $1.83 billion forecast for 2016-17
• Personal tax rate increases and new levy on individuals
• Retroactive corporate tax rate increase
• HST increase

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