Newfoundland and Labrador Fiscal Snapshot: Spring 2016
The Conference Board of Canada, 14 pages
June 21, 2016
This “fiscal snapshot” looks at the state of Newfoundland and Labrador’s economy and its government’s fiscal challenges, and provides a short- and medium-term outlook for the province.
- After years of spending well above the Atlantic average, a commodity price shock has pushed the province into a precarious fiscal position.
- In order to fill the hole left by oil royalty revenues, the latest budget introduced substantial increases in taxes as a first step toward bringing the books into balance.
- Even with the many new measures, weak oil revenues are likely to keep the province in deficit through the entire length of the forecast.