Today, the Auditor General released her annual report, confirming that the Government of Newfoundland and Labrador received an unqualified (clean) audit opinion on the 2022-23 Public Accounts which are the audited financial statements of the province for the fiscal year that ended March 31, 2023.

In her report, the Auditor General provides a comprehensive review of areas for improvement within the Provincial Government and its entities. These recommendations are welcomed and will now be reviewed in their entirety, with the aim of making changes that are necessary for the province’s financial health.

As recommended by the Auditor General, the Provincial Government continues to focus on reducing net debt and borrowings. As a result, net debt to GDP has improved from nearly 50 per cent in 2020-21 to approximately 41 per cent in 2022-23. Further, net debt per capita decreased from $32,093 in 2021-22 to $31,059 in 2022-23.

Also noted by the Auditor General, key risks that have potential to significantly impact the provincial economy and fiscal position include rate mitigation, market conditions, and demographic factors such as the need to provide services to smaller communities and the widely dispersed population.

The Provincial Government is overcoming these risks by delivering on its plan for financial improvement focused on balancing budgets, transforming and modernizing government, while managing and lowering our cost of debt. This has included fixing the financing of the Muskrat Falls Project through a $5.2 billion rate mitigation agreement with the Federal Government, as well as strengthening the Auditor General’s role, so she can provide further recommendations on strengthening the province’s financial management practices.

Economic indicators are showing healthy signs for Newfoundland and Labrador:

• According to the 2023 inventory of major projects, about $18.3 billion in major capital spending, on projects valued over $25 million, was planned or underway in the province.
• For 2023, employment in the province was 236,700, an increase of 1.8 per cent compared to 2022. This marks the highest employment level in the province since 2015.
• The unemployment rate averaged 10.0 per cent in 2023, a decrease of 1.3 percentage points compared to 2022. This marks the lowest annual unemployment rate in the province since consistent records began in 1976.
• Population growth continued for the tenth straight quarter. On an annual basis, the province’s population increased by 7,022 persons, or 1.3 per cent, from July 1, 2022 to July 1, 2023, the largest annual increase since 1972.

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“We thank the Auditor General and her team for their work. In keeping with her recommendations, we are delivering on our plan for financial improvement, with a focus on paying down our debt. At the same time, we are encouraged by Newfoundland and Labrador’s strengthened economy, high employment, and population growth, as we work towards a stronger, smarter, self-sufficient, sustainable province.”
Honourable Siobhan Coady
Minister of Finance and President of Treasury Board

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All Reports – Office of the Auditor General

Provincial Government Releases 2022-23 Public Accounts