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Newfoundland and Labrador: Budget 2024 - Major Project Activity and Spending Control Guide Path to Balance

March 21, 2024
Marc Desormeaux, Principal Economist • Kari Norman, Economist

Newfoundland and Labrador’s (NL) fiscal year 2024–25 (FY2025) budget plans to dip into deficit in FY2025, then return to surplus thereafter as planned.

The plan includes huge upward revisions to capital investment and economic growth beginning this calendar year amid a better outlook for major project activity.

Spending projections were increased, but the province plans to reduce total expenditures beyond FY2025.

NL expects to borrow $2.8B in FY2025. That figure represents an increase of about $600M versus FY2024.

Policy announcements were concentrated in the healthcare sector. The province will also introduce a Basic Income pilot program for people aged 60–64, maintained the 15% increase to the Seniors’ Benefit of the past two years and has already reduced the Small Business Tax Rate by 0.5%.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.