CHANGE starts here. Budget 2021 marks a key step in beginning the transformation of Newfoundland and Labrador. Through bold, innovative actions we are setting a course that takes control of the province’s finances, promotes healthier, more active communities, contributes to a stronger economy, invests in our youth, and makes this province a great place to live, work and raise a family. It includes new and continued investments as well as partnerships with the Federal Government.

Financial Landscape

• Budget 2021 is a first step in a multi-year forecast. Surplus is expected in 2026-27.
• The projected deficit for 2021-22 is $826 million, an improvement of $1 billion from Budget 2020.
• Revenue projections for 2021-22 are $8.5 billion, an increase of $1.4 billion over 2020-21. This increase in revenue is primarily attributed to increased oil royalties and additional Federal Government related revenues.
• Current oil price projections have improved to $US64 per barrel, while the Canada to United States exchange rate is forecast at  79.6 cents.
• The projected borrowing requirement for 2020-21 has also been reduced to $1.7 billion, down $1.1 billion from Budget 2020.
• The net debt is now anticipated to reach $17.2 billion in 2021-22, down almost $800 million from Budget 2020.

Living with COVID-19

• Close to $100 million for health care for such things as personal protective equipment, testing and supporting vaccines.
• $30 million for a Tourism and Hospitality Support Program to alleviate pressures experienced by COVID-19. The program will address recommendations from the Premier’s Advisory Council on Tourism and include a new Artist Support Program.
• $20 million to assist small businesses and community organizations with increased costs and losses as a result of the pandemic.
• More than $13 million to maintain key COVID-19 staffing and supports in K-12 education for the current school year, and to maintain increased administrator and guidance counsellor positions for the upcoming school year.

Addressing Social Determinants of Health

• Estimated $7 million for the Physical Activity Tax Credit, which will provide a refundable tax credit of up to $2,000 per family. This will be a helpful incentive for families as they look to access sport and recreational activities. It has the added benefit of supporting the local health and wellness industry.
• Boosting the Mother Baby Nutrition Supplement to $100 per month for low income pregnant mothers and for families with children under age one – up from $60; an increase of 66 per cent.
• A 20 cent per litre sugar sweetened beverage tax, which will be implemented on April 1, 2022. This will position Newfoundland and Labrador as a leader in Canada and will help avoid future demands on the health care system.
• A three cent increase per cigarette and a six cent per gram increase on fine cut tobacco. The rebate rate for Labrador Border Zones will increase by three cents for cigarettes and six cents per gram for fine cut tobacco.
• $1.8 million to prevent and reduce tobacco and vaping use.

Smart Investments

• Close to $600 million for infrastructure projects. This will help improve access to services and create more jobs for people in this province.
• $27 million to support economic development initiatives including research and development, commercialization, regional development and business growth activities such as investment in the technology sector.
• $22 million to maintain additional teaching resources hired through the Education Action Plan.
• $17 million to preserve and repair social housing, ensuring the sustainability of these homes for those that need them today and in the future.
• $25 million is being allocated over the next three years to improve connectivity through cellular and broadband service.
• $10 million for the Film and Television Equity Investment Program.
• An additional $2.5 million will be invested for focused geoscience data collection and interpretation. $1.7 million for the mineral exploration industry through the Prospector Assistance Program and the Junior Exploration Assistance Program.
• $5 million for Arts NL.
• $1 million this year and $2 million annualized to attract prospective residents from other parts of Canada and around the world.
• $1 million to help transition homes whose sole source of heat is oil to electricity. The program provides a rebate up to $2,500.
• $500,000 for an Electric Vehicle Adoption Accelerator program, which will help encourage the purchase of electric vehicles through a $2,500 rebate to consumers.