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Executive Council
Finance
April 19, 2011

Standing Strong: For Prosperity. For Our Future. For Newfoundland and Labrador

Under the leadership of the Honourable Kathy Dunderdale, Premier of Newfoundland and Labrador, the Provincial Government today unveiled its plan to propel Newfoundland and Labrador to the full heights of its potential.

Budget 2011 Standing Strong: For Prosperity. For Our Future. For Newfoundland and Labrador, is a commitment to continue with determination to build the province and to create opportunities for more citizens to thrive and prosper. The budget targets initiatives in key areas, including tax relief, health care, new measures to assist families and children, infrastructure, innovation and social programming.

“Never before in our history have we been better positioned to move forward with an agenda that will bring real and lasting benefits to the people of this great province,” said Premier Dunderdale. “To achieve success from both an economic and social perspective, we must be fiscally responsible, paying close attention to our financial position, while maintaining a level of investment to ensure the growth of the economy, and making strategic investments that will enable our young people, families, seniors and our entrepreneurs and innovators to prosper.”

Budget 2011 projects a surplus of $485 million for 2010-11, and forecasts a surplus of $59 million for 2011-12.

“Through a combination of sound decision-making and strong resource revenues, we are on a solid financial footing, with the ability to focus expenditures where they are needed most,” said the Honourable Tom Marshall, Minister of Finance and President of Treasury Board. “Our multi-year provincial infrastructure strategy has stimulated economic activity in regions across the province. Standing strong on our record of responsible financial management, we will maintain a balance in spending that is based on what is affordable in future years.”

Highlights of the positive economic outlook for Newfoundland and Labrador in 2011:

  • Real Gross Domestic Product (GDP) growth of 3.0 per cent;
  • Employment growth of 3.0 per cent;
  • Unemployment rate decrease of 0.6 per cent;
  • Personal income and disposable income growth of 5.5 per cent and 5.4 per cent respectively;
  • Retails sales growth of 4.2 per cent;
  • Population increase of 0.3 per cent due to positive net migration;
  • Capital investment increase of 27.2 per cent to $8.3 billion;
  • Mineral shipments to increase by 27 per cent to $4.8 billion; and,
  • An increase in total overnight tourist visits by 2.1 per cent.

Highlights of Budget 2011 include:

  • Tax relief measures, including a new energy rebate and child care credit, which will put more than $44 million annually back in the hands of Newfoundlanders and Labradorians;
  • Approximately $16 million for progressive new initiatives to support families and young children and continued support for the Department of Child, Youth and Family Services;
  • A multi-year infrastructure strategy valued in excess of $5 billion, with $1 billion targeted for 2011-12 to help maintain economic growth and stimulus;
  • A record investment of $2.9 billion for improved health care, as well as approximately $8.7 million specifically for improvements in the areas of mental health and addictions;
  • $1.4 billion for new and ongoing educational initiatives in the K-12 and post-secondary systems to give Newfoundlanders and Labradorians the knowledge and skills they need to thrive;
  • Approximately $175 million in business development programs and services, including $8 million to expand broadband to more communities;
  • $140 million to enable new opportunities for those living with low incomes and individuals facing poverty; and,
  • Continued investments in Labrador through the Northern Strategic Plan which, since 2004, will exceed $3 billion at the end of this fiscal year.

“Our government is standing strong for the people of Newfoundland and Labrador, determined to provide the tools to enable all individuals to be self-reliant and to prosper,” said Premier Dunderdale. “We will build our province by building partnerships and making responsible, progressive decisions. Investments in our families and young people, coupled with support to promote a thriving economy will serve our province well into the future.”

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Photo #1: Tom Marshall – Minister of Finance and President of Treasury Board

Milly Brown
Press Secretary
Office of the Premier
709-729-4304, 631-8477
millybrown@gov.nl.ca
Luke Joyce
Director of Communications
Department of Finance
709-729-6830, 725-4165
lukejoyce@gov.nl.ca

 

2011 04 19                                                                            2:15 p.m.

 
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