Budget Considerations – Expenditures

Introduction

The Government of Newfoundland and Labrador has three methods to deal with the current budget shortfall: increase revenues through raising taxes and user fees; decrease expenditures; and borrowing.

Where is your money being spent? The answer is: mostly on health and education. As of January 2015, 37.7 per cent went to the health care sector and 20.5 per cent to education, including post-secondary education.

The Provincial Government spends more on programs and services per person in Newfoundland and Labrador than the all-provincial average. In 2013-14 we spent $13,300 per person – the all-provincial average was $8,917.

The Government of Newfoundland and Labrador employs approximately 48,500 people. Approximately 37,000 of these are employed in the health and education sectors. Cutting spending on government programs and services will result in a reduction in the size of the public service.

This chart should render using javascript. A static copy is available as an alternative.

 

Health Care Expenditures

Health care accounts for almost 40 per cent of the entire provincial budget. We spend more per person on health care than any other province in Canada. Our spending per person went from $2,974 in 2004 to $5,100 in 2014, well above the Canadian average of $2,637 in 2004 and $3,960 in 2014.

We need to carefully manage our budget, while providing quality health care and improving the health of Newfoundlanders and Labradorians.

After all, keeping people healthy and out of the hospital is the best way to stop health care costs from rising.

This chart should render using javascript. A static copy is available as an alternative.

K-12 Education Expenditures

This chart should render using javascript. A static copy is available as an alternative.

K-12 enrolment has decreased from just under 120,000 students in 1993-94, down to just over 65,000 this year. While enrollment has declined, the cost of educating our children has risen from just under $6,000 per student in 1993-94, to nearly $14,000 per student in 2014-15.

The overall K-12 budget has increased from $591 million in 2003 to over $872 million in 2014 – representing a 48 per cent rise in spending.

 

Post-Secondary Education Expenditures

Memorial University

The situation is similar in post-secondary education. Historic levels of investment have made quality post-secondary education in this province affordable and accessible.

We have made significant investments in education because we believe education is the key to future economic growth in the province.

The Provincial Government’s contribution to the Memorial University operating grant continues to grow, while enrolment at Memorial has not seen significant change since 2004-05. It’s worth noting that the Provincial Government provides additional funding the university on an annual basis in order to maintain the freeze on tuition.

This chart should render using javascript. A static copy is available as an alternative.

College of the North Atlantic

The Provincial Government continues to make significant investments in the College of the North Atlantic. Operating grant funding has increased by 22.9 per cent since 2004-05. (Note: the removal of Adult Basic Education from CNA in 2013-14 contributed to the drop in enrollment that year.)

The Provincial Government provides additional funding to the college on an annual basis in order to maintain its the freeze on tuition, just as it does with Memorial University.

This chart should render using javascript. A static copy is available as an alternative.

Infrastructure Expenditures

In the past ten years the Provincial Government has worked to address a significant “infrastructure deficit” throughout Newfoundland and Labrador, which required us to make historic levels of investment in much-needed infrastructure.

In 2003-04, approximately $154 million was invested in infrastructure. This investment increased to $687 million in 2012-13, an increase of 346 per cent. Since 2004-05, the Provincial Government has made significant progress in replacing the province’s aging infrastructure by investing approximately $6 billion.

This chart should render using javascript. A static copy is available as an alternative.