Executive Council
Finance
December 22, 2015
Stronger Fiscal Management A Top Priority
Government Releases Revised Deficit and Updates Economic Indicators
Addressing the new fiscal reality facing Newfoundland and Labrador is the top priority for the Provincial Government. Today the Honourable Dwight Ball, Premier of Newfoundland and Labrador, along with the Honourable Cathy Bennett, Minister of Finance and President of Treasury Board, released the province’s 2015-16 Fiscal and Economic Update. The projected deficit has been revised to $1.96 billion, an increase of $869.5 million over the Budget 2015-16 projection of $1.093 billion.
“Newfoundland and Labrador is at a critical juncture and at no other time has it been more important for us to get our province back on track. This province is facing an extremely difficult fiscal reality. Understanding this new reality, correcting the course and moving forward with stronger fiscal management is my government’s top priority. We must begin by acknowledging what the baseline truly is today and in the weeks and months ahead leading into Budget 2016-17 we will engage in meaningful dialogue with key stakeholders and the public. This process will lead to better long-term planning and deliver benefits to all residents of our province.”
- The Honourable Dwight Ball, Premier of Newfoundland and Labrador
The economy is not performing as it was expected at the time of preparation of Budget 2015-16. The export sector was negatively impacted by lower oil production. For the year as a whole, final real domestic demand is expected to be down slightly compared to 2014, while real gross domestic product (GDP) is forecast to decline by 2.6 per cent due to lower exports. In 2017 and 2018, economic growth is expected to be constrained by declines in capital investment and lower employment from completion of large scale projects.
Beyond 2018, the recent announcement of a record $1.2 billion in new offshore exploration commitments bodes well for the economic future of the province.
“Today’s mid-year update not only provides vital information for our government as we head into the budget process, but is also important for Newfoundlanders and Labradorians to consider as we begin pre-budget consultations and seek input from our citizens. It is clear that we have to do something to improve our fiscal situation and I am encouraging all Newfoundlanders and Labradorians to participate in the pre-budget process and share their ideas with us as we begin to focus on fiscal responsibility and long-term stability. We have very important decisions to make as a government and we expect to be held accountable. I am confident in the leadership of Premier Ball and together with my fellow Cabinet members we will be able to deal with the difficult fiscal reality with which we are now faced.”
- The Honourable Cathy Bennett, Minister of Finance and President of Treasury Board
Further information on the 2015-16 Mid-Year Economic Update, including the complete Economic Review, can be found at www.fin.gov.nl.ca.
QUICK FACTS:
- Addressing the new fiscal reality facing Newfoundland and Labrador is the top priority for the Provincial Government.
- The projected deficit has been revised to $1.96 billion, an increase of $869.5 million over the Budget 2015-16 projection of $1.093 billion.
- Real gross domestic product (GDP) is forecast to decline by 2.6 per cent due to lower exports.
- In 2017 and 2018, economic growth is expected to be constrained by declines in capital investment and lower employment from completion of large scale projects.
- Beyond 2018, the recent announcement of a record $1.2 billion in new offshore exploration commitments bodes well for the economic future of the province.
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Media contacts:
| Nancy O’Connor Director of Communications Office of the Premier 709-789-1825 nancyoconnor@gov.nl.ca |
Jennifer Tulk Director of Communications Department of Finance and Human Resource Secretariat 709-729-6830, 728-4104 jennifertulk@gov.nl.ca |
2015 12 22 2:20 p.m.