We are inviting you to share your views in advance of Budget 2022.
Budget 2021: Change Starts Here, set a path to bring provincial spending under control and a plan to ensure our financial and economic future is secured. It presented a multi-year forecast to place the province in a balanced position by 2026-27.
Change Starts Here is a forward thinking plan that introduced a number of measures to transform and modernize government - bold, decisive actions that will result in better service delivery and improved financial outcomes.
Why is this needed?
Solutions are needed to address long-standing financial challenges in Newfoundland and Labrador. These include our structural challenges of a large geography, an aging and declining population and a dependence on volatile commodities. Annually, we are spending more than we are receiving in revenue and we have limited capacity to absorb further borrowing given our current debt load.
What if we do nothing?
If we do nothing, our deficit will grow and, as a result, our debt servicing costs will increase. We spend almost one billion dollars each year to service our debt. Imagine if we had that money to invest in our communities and our economy.
We are on the right path
The 2021-22 fiscal and economic update in November 2021 highlighted that the province is moving in the right direction.
Since Budget 2021, revenues are higher than originally forecast by $186 million, while expenses are lower by $45 million, resulting in a decreased projected deficit of $231 million. Contributing factors to higher revenues include increases in the corporate income tax, mining and minerals rights tax, sales tax and oil royalties.
The province is projecting the net debt to be $16.7 billion, a reduction of $500 million from the original Budget 2021 estimate of $17.2 billion.
Opportunity for the future
There are many opportunities and there is much potential in our province. We are undertaking a number of measures to address the deficit and debt, and to transform and modernize government. Through this work, we look to improve and enhance the quality of service delivery to citizens while at the same time doing it in a cost effective manner, removing duplication, and striving for clear and measurable outcomes.
The measures we undertake today are important to our broader transformation as we look at areas of our province with the highest expenditures, such as within government entities, education and health. We are taking the necessary steps to reinvent government and the provincial economy.
A Collaborative Approach
Transformation is powerful and so is the outcome. We can and must take those steps toward a sustainable fiscal future. We have an incredible opportunity to discover new ways of delivering services, become more efficient and be the best version of ourselves. By working together, meaningful change can be taken toward a stronger, more viable future for Newfoundland and Labrador.
How can you get involved?
As a province, let’s continue this work and move forward by taking the action necessary to meet our target of a surplus position by 2026-27, to transform government and the province.
Our partners in this transformation include you, the people of this province, our labour force, business and labour leaders, community groups and municipalities, and the federal government. It works best if we are all engaged and involved.
We welcome you to share your views.
Please note: you must log in or register to complete this questionnaire
The information we receive will be reviewed by Department of Finance, along with other relevant government departments. Feedback will be considered as the Provincial Government develops Budget 2022.
Privacy Statement
The collection of information is done under the authority of section 61(c) of the Access to Information and Protection of Privacy Act, 2015 for the purpose of collecting public feedback on the how to modernize government in advance of Budget 2022.
Any personal information that may be received will be governed in accordance with the Access to Information and Protection of Privacy Act, 2015 and will only be used for the purpose of providing a response to submissions received and informing public engagement results at the end of the process.
If you have any questions about how this information will be collected, used and disclosed, please contact Cassandra Hearn, ATIPP Coordinator, at 709-729-2082 or [email protected].
Contact Us
If you have any questions or additional comments, please contact Diana Quinton, Director of Communications, at 709-729-2477 or [email protected].
