Executive Council
Finance
March 29, 2010

Budget 2010: The Right Investments — For Our Children and Our Future

The Williams Government released its seventh budget today, continuing its substantial investments in economic stimulus, healthcare and education. Budget 2010: The Right Investments — For Our Children and Our Future presents a sound and progressive fiscal framework with investments targeted for the benefit of all Newfoundlanders and Labradorians, now and into the future.

"The decisions reflected in this budget demonstrate our careful and strategic management of the province's financial resources," said the Honourable Danny Williams, Premier of Newfoundland and Labrador. "As the world emerges from the global economic downturn, now is not the time to pull back on stimulus spending. We will continue our aggressive infrastructure strategy and approach to economic stimulus, while also ensuring quality programs and services for our people. Newfoundland and Labrador is a province on the move — we have decreased our debt by $3.4 billion in the last five years; we have moved from being a province with one of the highest levels of poverty in Canada to the province with the third lowest; this past year we were among the top performing provinces in growth in retail sales, labour income and capital investment; and we saw housing starts at near record numbers. We want to maintain this incredible momentum as we continue to take steps to make this a preferred place to live, work, invest in and visit."

Budget 2010 projects a revised deficit of $294.9 million for 2009-10, and forecasts a deficit of $194.3 million for 2010-11.

"The economic outlook for Newfoundland and Labrador in 2010 is quite positive," said the Honourable Tom Marshall, Minister of Finance and President of Treasury Board. "Our objective is to provide investments that further stimulate and support this projected growth. While our province has weathered the recent economic challenges better than most jurisdictions, the global economic recovery is fragile. Until we see traction in the world economy, especially in countries where we sell our forestry, fish and manufacturing products, we must maintain the momentum here at home and continue to invest to provide jobs and opportunities for the people of our province."

Highlights of the positive economic outlook for Newfoundland and Labrador in 2010:

  • Real Gross Domestic Product (GDP) growth of four per cent;
  • Employment growth of 2.3 per cent;
  • Unemployment rate decrease of 0.6 per cent;
  • Personal income and disposable income growth of 3.9 per cent and 3.3 per cent respectively;
  • Retails sales growth of five per cent;
  • Population increase of 0.5 per cent due to positive net migration;
  • Capital investment increase of 23 per cent to $6.2 billion;
  • Increase in housing starts of 1.5 per cent, with residential construction spending to increase 3.5 per cent to $1.6 billion;
  • Mineral shipments to increase by 60 per cent to $3.1 billion; and,
  • An increase in total overnight tourist visits by 1.3 per cent.

Highlights of Budget 2010 include:

  • Economic stimulus investments, including an aggressive $1 billion infrastructure program, with the Provincial Government's infrastructure strategy valued at more than $5 billion over the next several years;
  • A record budget of $2.7 billion for health and community services, including investments to advance health and wellness for children and youth;
  • New tax measures to benefit seniors, small business and others, putting approximately $49 million back into the pockets of residents;
  • $1.3 billion in education spending to further ensure quality programming and learning environments for students throughout Newfoundland and Labrador;
  • An overall budget of $167 million for the further development of the Department of Child, Youth and Family Services;
  • $134 million for the fight against poverty through the Poverty Reduction Strategy, continuing progress toward the goal of becoming the province with the lowest poverty rates in Canada; and,
  • An unprecedented investment of more than $158 million in Labrador through the Northern Strategic Plan, building on the Williams Government's commitment and record investments to foster a bright and prosperous future for Labrador.

"The initiatives laid out in this budget allow for the protection of our children's health and safety, quality education, improved access to healthcare services, and significant economic stimulus," said Premier Williams. "We are securing our bright future with a continued focus on strong fiscal management and the right investments, ensuring that the investments we make today are sustainable for our children, for our province and for our future."

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Media contacts:

Elizabeth Matthews
Director of Communications
Office of the Premier
709-729-3960
elizabethmatthews@gov.nl.ca 
Andrea Nolan
Press Secretary
Office of the Premier
709-729-4304, 727-0991
andreanolan@gov.nl.ca
Ronalda Walsh
Director of Communications
Department of Finance
709-729-6830, 685-1471
ronaldawalsh@gov.nl.ca

2010 03 29                                                       2:05 p.m.
 


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