“The budget is a matter of choice,” Finance Minister Siobhan Cody said in a speech to the St. John’s House on Thursday afternoon. “Your government has chosen to support you, to invest in health, education, the economy.” This option includes some measures to help residents struggling with inflationary pressures and the cost of living, along with new tax breaks to boost targeted industries. The provincial deficit for the financial year 2021-22, which just ended, amounted to $ 400 million, less than half of the initial forecasts. For 2022-23, the deficit is expected to be lower again, at $ 351 million. These numbers mark a sharp turnaround from the terrible first days of the pandemic, when the fiscal chaos fueled by COVID opened a huge hole in the balance sheet. The 2020-21 deficit was almost $ 1.5 billion. The province reiterated that it is now well on its way to balancing books by 2026.
Help for homeowners, drivers
The budget has some new relief measures to, according to Coady, “put money back in people’s pockets.”
He says there are no increases in provincial fees or tax increases.
The retail tax on home insurance is abolished for one year.
The cost of registering passenger cars, light trucks and taxis will be reduced by 50%, also for one year. Registration for a car will range from $ 180 to $ 90.
There are also new tax cuts “to encourage business investment and grow our economy,” Coady said.
Finance Minister Siobhan Coady speaks to reporters Thursday at the Confederation Building in St. Louis. John’s before laying the budget for Newfoundland and Labrador. (Patrick Butler / Radio Canada)
These include a new green technology tax credit, a tax credit for processing and manufacturing investments to support sectors such as fisheries, agriculture and forestry, and a film and video production tax credit.
The theme of the budget is “change is in the air”.
But this change is less dramatic than previous announcements that it could be in the works.
Less than a year ago, an extensive report commissioned by Prime Minister Andrew Fury revealed significant cuts in government spending.
This has not happened.
Coady told reporters that some of the advice from initiatives such as the Greene report and the Health Accord is being “sprinkled” through recent budgets.
In a major move, the government plans to collapse one of the province’s four health authorities.
Expenditure continues at record levels
Less than a year ago, initial forecasts showed that the province was expected to cut spending in 2022-2023.
At the time, officials said up to half a billion dollars of the planned reduction was structural. Instead, costs are rising again.
Last year, the county projected spending to fall from more than $ 9.3 billion in 2021-22 to less than $ 8.5 billion in 2022-23.
Real spending for last year, 2021-22, fell below $ 9.1 billion.
But now the province is projected to spend more than $ 9.4 billion next year.
Coady pointed out that hundreds of millions in “cash flow” are included in this set, related to federally funded programs and contributions that Ottawa has made to the province.
He told reporters that there were also “strategic investments” in healthcare.
Government revenue is expected to grow to $ 9 billion this year, $ 400 million more than in 2021-2022.
The officials pointed out that the increased iron ore prices lead to higher revenues from corporate income tax, along with more expected sales tax and income tax revenues, as reasons for this.
We have overcome this storm. We may have been whipped by this, but the day has come with brighter skies and calmer seas. The fog is rising.- Siobhan Coady
Oil rights are expected to fall to $ 866 million this year from more than $ 1.1 billion.
If the budget deficit forecast is maintained, 2022-23 would be the province’s best economic performance in almost a decade. While Newfoundland and Labrador closed their surplus in 2019, this is due to the billions of payments of the Atlantic Federal Agreement covering the coming years and decades.
In her first budget delay due to a pandemic 18 months ago, Coady said: “Our financial situation is a dazzling storm; we are in the middle of a storm.”
Coady turned to a maritime issue again, as she set the plan for 2022-23.
“We have overcome this storm,” the minister told Parliament. “We may have been whipped by this, but the day has come with brighter skies and calmer seas. The fog is rising.”
Read more from CBC Newfoundland and Labrador
title: “N.L. Slashes Deficit In Better News Budget That Maintains Record Spending " ShowToc: true date: “2022-11-19” author: “Margaret Fulton”
“The budget is a matter of choice,” Finance Minister Siobhan Cody said in a speech to the St. John’s House on Thursday afternoon. “Your government has chosen to support you, to invest in health, education, the economy.” This option includes some measures to help residents struggling with inflationary pressures and the cost of living, along with new tax breaks to boost targeted industries. The provincial deficit for the financial year 2021-22, which just ended, amounted to $ 400 million, less than half of the initial forecasts. For 2022-23, the deficit is expected to be lower again, at $ 351 million. These numbers mark a sharp turnaround from the terrible first days of the pandemic, when the fiscal chaos fueled by COVID opened a huge hole in the balance sheet. The 2020-21 deficit was almost $ 1.5 billion. The province reiterated that it is now well on its way to balancing books by 2026.
Help for homeowners, drivers
The budget has some new relief measures to, according to Coady, “put money back in people’s pockets.”
He says there are no increases in provincial fees or tax increases.
The retail tax on home insurance is abolished for one year.
The cost of registering passenger cars, light trucks and taxis will be reduced by 50%, also for one year. Registration for a car will range from $ 180 to $ 90.
There are also new tax cuts “to encourage business investment and grow our economy,” Coady said.
Finance Minister Siobhan Coady speaks to reporters Thursday at the Confederation Building in St. Louis. John’s before laying the budget for Newfoundland and Labrador. (Patrick Butler / Radio Canada)
These include a new green technology tax credit, a tax credit for processing and manufacturing investments to support sectors such as fisheries, agriculture and forestry, and a film and video production tax credit.
The theme of the budget is “change is in the air”.
But this change is less dramatic than previous announcements that it could be in the works.
Less than a year ago, an extensive report commissioned by Prime Minister Andrew Fury revealed significant cuts in government spending.
This has not happened.
Coady told reporters that some of the advice from initiatives such as the Greene report and the Health Accord is being “sprinkled” through recent budgets.
In a major move, the government plans to collapse one of the province’s four health authorities.
Expenditure continues at record levels
Less than a year ago, initial forecasts showed that the province was expected to cut spending in 2022-2023.
At the time, officials said up to half a billion dollars of the planned reduction was structural. Instead, costs are rising again.
Last year, the county projected spending to fall from more than $ 9.3 billion in 2021-22 to less than $ 8.5 billion in 2022-23.
Real spending for last year, 2021-22, fell below $ 9.1 billion.
But now the province is projected to spend more than $ 9.4 billion next year.
Coady pointed out that hundreds of millions in “cash flow” are included in this set, related to federally funded programs and contributions that Ottawa has made to the province.
He told reporters that there were also “strategic investments” in healthcare.
Government revenue is expected to grow to $ 9 billion this year, $ 400 million more than in 2021-2022.
The officials pointed out that the increased iron ore prices lead to higher revenues from corporate income tax, along with more expected sales tax and income tax revenues, as reasons for this.
We have overcome this storm. We may have been whipped by this, but the day has come with brighter skies and calmer seas. The fog is rising.- Siobhan Coady
Oil rights are expected to fall to $ 866 million this year from more than $ 1.1 billion.
If the budget deficit forecast is maintained, 2022-23 would be the province’s best economic performance in almost a decade. While Newfoundland and Labrador closed their surplus in 2019, this is due to the billions of payments of the Atlantic Federal Agreement covering the coming years and decades.
In her first budget delay due to a pandemic 18 months ago, Coady said: “Our financial situation is a dazzling storm; we are in the middle of a storm.”
Coady turned to a maritime issue again, as she set the plan for 2022-23.
“We have overcome this storm,” the minister told Parliament. “We may have been whipped by this, but the day has come with brighter skies and calmer seas. The fog is rising.”
Read more from CBC Newfoundland and Labrador
