The Honourable Siobhan Coady, Deputy Premier and Minister of Finance, today presented an update on the economic and fiscal position of the province for the fiscal year ending March 31, 2022.

The province’s projected deficit for 2021-22 has been revised to $595 million, an improvement of $231 million from the Budget 2021 forecast. The improved deficit is the result of higher than forecast revenue by $186 million mainly due to revenue increases in corporate income tax, mining and minerals rights tax and sales tax; and lower expenses by $45 million.

The province is projecting net debt to be $16.7 billion, a reduction of $500 million from the original Budget 2021 estimate of $17.2 billion.

Borrowing requirements are reduced from $1.7 billion to $1.5 billion due to the decreased deficit.

The price of oil has been revised to $US 74 from the Budget 2021 projection of $US 64 dollars. The US to Canada exchange rate has been adjusted to 80 US cents from the Budget 2021 projection of 79.6 cents.

Newfoundland and Labrador’s economy continues to recover in 2021:

• Real GDP is forecast to grow by 5.8 per cent – slightly higher than expected at Budget 2021, due to increases in consumer spending, capital investment and mineral production.
• Retail sales are higher due to stronger than expected year-to-date numbers – up 11.5 per cent so far in 2021.
• Housing starts are up due to higher year-to-date numbers – starts are up 51.8 per cent over the first three quarters.
• Capital investment is up due to higher investment in the Voisey’s Bay Underground Mine project and higher housing starts.
• Employment is higher and the unemployment rate is lower due to stronger than expected year-to-date employment – up 3.2 per cent over first ten months of 2021.

The Economic Review 2021 is available online.

Quote
“The 2021-22 fiscal and economic update highlights that the province is moving in the right direction. We have to continue to hold the line on expenses; invest wisely and purposely to achieve a stronger, more sustainable Newfoundland and Labrador. Our partners include the people of this province, business leaders, community leaders, our labour force and their leaders. We need everyone engaged and involved. We are on the right path. Let’s stay focused.”
Honourable Siobhan Coady
Deputy Premier, Minister of Finance

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2021-22 Fiscal and Economic Update

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