Today, the Honourable Siobhan Coady, Deputy Premier and Minister of Finance, released Budget 2024 – Transforming: Our Health. Our Economy. Our Province.

In Budget 2024, the Provincial Government is focused on transforming the province’s finances, while delivering:

• No new taxes, tax increases or fee increases.
• Continued focus on affordability during a time of higher interest rates:
  • Continuing the 8.05 cent per litre (includes HST) reduction in the provincial tax on gasoline and diesel;
  • Continuing the 50 per cent reduction in the cost of registering passenger vehicles, trucks and taxis;
  • Maintaining the home heating supplement for furnace and stove oil; and,
  • Continuing the elimination of the retail sales tax on home insurance.
• Reducing the small business tax rate, as well as taking meaningful action to cut red tape and speed processes to support business and drive economic activity.
• Record investments in health care, the well-being of seniors, poverty reduction, and housing.
• Record investments in infrastructure for health, education, and housing.

Fiscal overview

• Projected deficit of $152 million for 2024-25, which represents 1.5 per cent of revenues.
• Balanced budgets are projected for each year in the multi-year forecast, extending to 2028-29.
• Projected revenues for 2024-25 are $10.3 billion – an increase of 7.8 per cent and the highest in the province’s history.
• Projected expenses for 2024-25 are $10.4 billion – an increase of 4.6 per cent.
• Of the $10.4 billion in expenses, $510 million is 100 per cent federally funded.
• Net debt is expected to be $17.8 billion in the 2024-25 fiscal year.
• The projected borrowing requirement for 2024-25 is $2.8 billion.
• Current oil price projections are $US82 per barrel, while the Canada-United States exchange rate is forecast at 74.7 cents.
• Oil revenues in 2024-25 are expected to represent 15 per cent of overall revenues compared to 33 per cent in 2011-12.

Economic outlook

• Forecasts of economic indicators show Newfoundland and Labrador as having one of the highest rates of economic growth for 2024 among provinces.
• Opportunities in the green energy, low carbon oil, mining and aquaculture industries are expected to boost economic activity over the forecast period.
• Real GDP: forecast to increase by 5.1 per cent in 2024, primarily due to a rebound in oil and nickel production.
• Total employment: forecast to increase by 0.9 per cent in 2024.
• Unemployment rate: expected to remain on par with the record low in 2023 at 10.0 per cent in 2024.
• Household income: expected to increase by 4.9 per cent in 2024.
• Retail sales: forecast to increase by 2.8 per cent in 2024.
• Population: projected to rise by 0.8 per cent in 2024, continuing the strong growth seen in 2023.
• Capital investment: expected to increase by 3.0 per cent to $9.6 billion in 2024.
• Inflation: forecast to be 2.6 per cent in 2024.

Transforming the province’s finances

• Focusing on balanced budgets – the provincial deficit has decreased from $1.5 billion in 2020-21 to $152 million estimated in 2024-25.
• Contributing $72.4 million to the Newfoundland and Labrador Future Fund, bringing the total contributions to $358.8 million.
• Creating sinking funds when new bonds are issued, so that money is put aside to be used only for repaying the principal of the bonds at maturity.
• Working to lower the cost of borrowing through opportunities such as the European borrowing program so the province has the option to issue bonds beyond the Canadian market.
• Strengthening liquidity, so that we have the cash reserves available to meet obligations.
• Fixing the financing of the inherited Muskrat Falls Project through a $5.2 billion rate mitigation agreement with the Government of Canada.

More details on Budget 2024 investments and economic projections are available online at gov.nl.ca/Budget2024.

Quote
“As a government, we are transforming the province’s finances as we work towards a stronger, smarter, self-sufficient, sustainable province. We are continuing to help residents and businesses with affordability measures and making record investments in health care, seniors, housing, poverty reduction, and infrastructure. At the same time, we are focusing on balanced budgets and setting aside money to pay for our debt.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance

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Learn more
gov.nl.ca/Budget2024

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