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Executive Council

March 27, 2014

Budget 2014
Shared Prosperity, Fair Society, Balanced Outlook

A fair social and economic plan for all residents of Newfoundland and Labrador was unveiled today with Budget 2014: Shared Prosperity, Fair Society, Balanced Outlook. This year’s budget reflects the priorities of the people of the province, while also maintaining the Provincial Government’s commitment to strong fiscal management as outlined in its 10-Year Sustainability Plan.

“The people of the province have told us what their priorities were, and we listened. Budget 2014 reflects what they told us. It demonstrates a commitment to ensuring fairness, so that residents share fully and equally in the prosperity from our province’s unprecedented economic growth. Budget 2014 is a balanced approach to supporting continued economic and social prosperity, while ensuring our long-term plan for strong fiscal management.”
- The Honourable Tom Marshall, Premier of Newfoundland and Labrador

The deficit for 2013-14, projected at mid-year to be $450.6 million, is now revised to $348.7 million; as a result of lower spending than budgeted. The projected deficit for 2014-15 is $537.9 million. Overall current and capital expenditure growth in Budget 2014 is limited to 2.1 per cent, as compared to Budget 2013. As outlined in the 10-Year Sustainability Plan, the province will return to a surplus in 2015-16.

“During pre-budget consultations this year, we held a total of 12 sessions in 11 locations across the province. With over 100 presentations from residents, stakeholders and community groups, we heard about the important work they are doing in their communities and regions and how they are making a difference in people’s lives every day. We have heard the message that has been delivered. Through a balanced outlook, we will continue to invest in social programs and in economic development, while ensuring the province maintains a strong fiscal foundation, now and into the future.”
- The Honourable Charlene Johnson, Minister of Finance and President of Treasury Board

The commitment to the 10-Year Sustainability Plan includes the goals of maintaining a competitive tax environment and continuing to work with stakeholders to ensure the long-term sustainability of the public sector pension plan. The province’s net debt is expected to increase to approximately $9.8 billion in 2014-15, with approximately 74 per cent of the net debt due to the liability associated with pension and other post-employment benefits. The percentage is expected to reach 85 per cent by 2016-17 if no action is taken.

Budget 2014 makes strategic investments in areas that matter most to the people of Newfoundland and Labrador. This includes $35.4 million over three years to implement universal, full-day Kindergarten, $14.7 million over two years to eliminate student loans and replace them with non-repayable up-front grants and $61 million this year alone for long-term care and community support services.

Budget 2014 includes further enhancements that will see more money put back into the hands of seniors, individuals with low incomes and small businesses in the province, along with changes to the dividend tax credit and an increase in tobacco tax. For further details, see Backgrounder: Province Continues to Benefit from Unprecedented Economic Growth and Backgrounder: Enhancements to Tax Programs to Benefit Seniors, Low Income and Small Business.

Through sound fiscal management and responsible decisions, the Government of Newfoundland and Labrador is strengthening the business environment, encouraging the development of innovative industries and building a vibrant economy.


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Media contacts:
Milly Brown
Director of Communications
Office of the Premier
Tracey Boland
Press Secretary
Office of the Premier
709-729-4304, 697-3128

Tansy Mundon
Director of Communications
Department of Finance
709-729-6830; 693-1865

2014 03 27                               2:20 p.m.

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