Finance
December 28, 2017
Province Benefits from Balanced Approach in 2017
In 2017, Government continued its efforts to return Newfoundland and Labrador to fiscal sustainability. Guided by The Way Forward: A vision for sustainability and growth in Newfoundland and Labrador, the Provincial Government continued to focus on strengthening Newfoundland and Labrador’s economy, delivering better services, and improving outcomes, all in order to promote a prosperous Newfoundland and Labrador.
Successes this year for the Department of Finance and the Human Resources Secretariat included:
- At the Federal, Provincial and Territorial Finance Ministers Meeting in December, the Minister of Finance and his colleagues successfully negotiated improved cannabis taxation terms with the federal Minister of Finance. As a result, 75 per cent of the cannabis excise tax will go to provinces, and the remaining 25 per cent will go to the Federal Government. The federal portion of the excise tax revenues will also be capped at $100 million annually, with additional funds redistributed to the provinces.
- In November, the Provincial Government introduced amendments to the Liquor Corporation Act that will give the Newfoundland and Labrador Liquor Corporation the authority to act as a regulator and distributor for cannabis. Amendments will allow government to proceed with the considerable work required to establish a retail and distribution model for cannabis in Newfoundland and Labrador.
- Pre-budget consultations were launched at the earliest point in the past decade. Using a multi-phased approach to pre-budget consultations, beginning in December 2017 and continuing until February 2018, the public will have multiple opportunities to share their feedback on the budget process in advance of Budget 2018.
- A tentative agreement was reached with NAPE in December 2017. A ratification vote for this agreement will occur in the New Year.
- The temporary gas tax was reduced by four cents on December 1, 2017. It was previously reduced by 8.5 cents on June 1, 2017, for a total reduction in 2017 of 12.5 cents or 75 per cent.
- On January 1, 2018, the provincial portion of the HST rebate on books will be reinstated.
In the year ahead, government will remain focused on addressing the province’s unsustainable fiscal situation. Government will continue to take a balanced approach, with a focus on delivering programs and services that are important to the public in a smarter and more efficient way.
Quote
“Since forming government, we have faced unprecedented fiscal challenges, but this year we have continued to make strides in reducing the annual deficit. With pre-budget consultations ongoing, I encourage everyone in Newfoundland and Labrador to share their perspective and to be a part of these important discussions. I welcome public input as we make important decisions for the future of this province.”
Honourable Tom Osbourne
Minister of Finance
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Learn More
The first phase of the budget consultation process is underway. Interested stakeholders, public sector employees and members of the public can provide input through a written submission by email to budget2018@gov.nl.ca.
Reinstatement of the General HST Point-of-Sale Book Rebate in Newfoundland and Labrador: gov.nl.ca/releases/2017/fin/0822n03.aspx or www.fin.gov.nl.ca/fin/tax_programs_incentives/generalHSTbook_rebate.html.
Media contact
Chrysta Collins
Finance/Human Resources Secretariat
709-729-4839, 690-4436
chrystacollins@gov.nl.ca
2017 12 28 12:50 p.m.