“Change is in the air” is the theme of this year’s provincial budget.
The projected deficit for this year is $351 million, that’s down significantly from two years ago in 2020 when the projected deficit was $2.1 billion. Government is still projecting a return to surplus in 2026-27. Borrowing is up this year over last. Government expects to borrow $2.7 billion, up from $1.7 billion last year and nearing the $3 billion borrowed in 2020.
There are no increases in provincial fees or taxes, and the 15 per cent sales tax on home insurance is being eliminated for one year, effective immediately. The cost of registering your vehicle is being cut in half, affecting all passenger vehicles including pick-ups and taxis.
There’s a new 20 per cent green technology tax credit for businesses to help them with the purchase of equipment for energy conservation.
Government is also moving forward with a number of PERT report recommendations, including the development of an accountability framework for ABC’s and not-for-profits that rely on government funding. The province also intends to bring forward Balanced Budget legislation, and the development of a future fund.
Modernizing Services a Priority in Budget 2022
Some might argue that there are not a lot of changes in the budget particularly as if affects ordinary Newfoundlanders and Labradorians and the some of the province’s most vulnerable citizens.
Finance Minister Siobhan Coady, says the theme of this year’s budget “Change is in the air” says it’s about making changes to the province’s fiscal situation.
She says it’s really about the changes and improvements government is making to the overall fiscal situation including the modernization of the way services are delivered. “That stronger, smarter more self-sufficient Newfoundland and Labrador is our goal” she told reporters today.
