Families can take comfort in Budget 2022 and the actions that our government is taking to ease some of the pressures attached to the cost of living. Change is in the air builds on the foundation of bold, innovative actions that our government has created. We are investing in the priorities of Newfoundlanders and Labradorians – child care, education, health – as well as supporting businesses and communities to thrive.

Financial Landscape

• Budget 2022 positions Newfoundland and Labrador to achieve surplus in 2026-27.
• The projected deficit for 2021-22 is $400 million, an improvement of $426 million from Budget 2021.
• The projected deficit for 2022-23 is $351 million.
• Revenue forecasts for 2022-23 are $9.1 billion, an increase of $407 million over last year. This increase is mostly attributed to improved economic output.
• Oil production is lower in 2022-23 due to lower well performance and planned maintenance shut- downs on some fields. Oil revenues in 2022-23 are expected to represent 10 per cent of overall revenues compared to 32 per cent in 2011-12.
• New expenditures are largely attributed to fully-funded federal programs totaling $774 million for such things as workforce development, the offshore oil and gas industry, and child care.
• Oil price is forecasted at US$86 per barrel, while the Canada to United States exchange rate is 79.3 cents. This is based on independent forecasters.
• The projected borrowing requirement for 2022-23 is $2.7 billion.

Cost of Living

• Elimination of the retail sales tax on home insurance for one year.
• 50 per cent off the cost of registering passenger vehicles, light trucks and taxis for one year.
• No provincial tax or fee increases.
• Almost $46 million to lower child care to $10 per day.
• Estimated $7 million for the Physical Activity Tax Credit, which provides families with a refundable tax credit of up to $2,000.
• Boosting the Pre-natal Infant Nutrition Supplement, formerly the Mother Baby Nutrition Supplement, to $150 per month for low income pregnant people and families with children under age one – up from $100 per month. The one-time payment provided during the month of the baby’s birth will also increase from $100 to $150.
• $73 million for the Income Supplement, which is a 10 per cent increase.
• $61 million for the Seniors’ Benefit, which includes a 10 per cent increase and will provide eligible individuals with up to $1,444 annually. This will benefit over 50,000 seniors and their families.
• An additional $1.9 million for electric vehicle charging infrastructure, as well as a $2,500 rebate for consumers who purchase or lease all-electric vehicles and $1,500 rebate for the purchase or lease of plug-in hybrid vehicles.
• An additional $2 million to help transition homes whose sole source of heat is oil to electricity. The program will now provide a rebate of up to $5,000 – double the existing rebate of up to $2,500.
• Metrobus or GoBus passes currently available to income support clients in St. John’s, Mount Pearl, and Paradise are being expanded to include seniors receiving the Guaranteed Income Supplement, as well as those receiving Youth Services from Children, Seniors and Social Development.

Supporting Industry and Business

• $567 million for infrastructure projects, which will help create 3,200 jobs and $390 million in economic activity.
• A new green technology tax credit of 20 per cent to help businesses with specific capital costs for green activities such as equipment for energy conservation and clean energy generation and efficient use of fossil fuels.
• A new 10 per cent Manufacturing and Processing Investment Tax Credit will support the manufacturing, fishery, farming, and forestry sectors to invest in capital equipment.
• A new All Spend Film and Video Production Tax Credit. The 30 per cent tax credit will apply to total qualified production costs with a maximum tax credit of $10 million annually per project.
• $2.6 million for a new film and production program for College of the North Atlantic.
• $20 million in new funding to support our tourism, hospitality, arts and cultural industries.

Supporting Health and Education

• Approximately $14 million to improve access to primary health care.
• $3 million to increase the number of seats in Memorial University’s Nursing Program by
  25 per cent; and $2.5 million to increase the number of seats in the personal care attendant, practical nursing, paramedicine and other health programs at the College of the North Atlantic.
• $1.8 million to continue Health Hubs in Grand Falls-Windsor and Gander and another $3 million for a virtual emergency room in the central region.
• An additional $3.3 million for the air ambulance program.
• Over time, an additional 39 positions with an almost $10 million investment for cancer care at the new regional hospital in Corner Brook.
• $2.5 million for a new Alcohol Action Plan.
• $2.5 million for a new Life Promotion Suicide Prevention Action Plan.
• $3.1 million in additional funding for teaching services to meet the rising student population.
• $4 million to maintain guidance counsellor and administrator positions added during the pandemic.