Premier Andrew Furey says the province’s fiscal situation has “temporarily improved” ahead of a fiscal update scheduled to take place in the coming weeks.
Yesterday, the province announced a one-time cost-of-living benefit that will be paid out to about 392,000 people.
People who make under $100,000 per year are guaranteed to receive a cheque for $500, while those who make between $100,000 and $125,000 will receive an amount based on a sliding scale.
Given the financial strain the province has been under for several years, many are left to wonder how such a significant payout of funds is possible. Finance Minister Siobhan Coady says revenue to government has been higher this year, she uses oil prices as an example.
She says they budgeted for oil at $86 per barrel, but the price has been much higher than that. She says every $1 increase has an impact of $13 million to the treasury.
Lieutenant Gov @judy_foote delivers the speech from the throne. Something new in the speech is that the gas tax reduction has been extended until March 31, 2023 @VOCMNEWS pic.twitter.com/pPgOVmFMBb
— Richard Duggan (@RDugganVOCM) October 5, 2022
Opposition Reacts to Cost of Living Relief Cheques
The issue of the cost of living was front and centre during the Speech from the Throne yesterday. While Premier Andrew Furey touted the strides made by government, Opposition House Leader Barry Petten—who is serving in the absence of leader David Brazil—focused on the one-time cost-of-living benefit.
Specifically, he criticized how long it took for government to implement such a relief measure.
He says it took 15 months of advocacy for government to realize what they put in place was not enough. Petten hopes it isn’t another 15 months before government listens again.
NDP leader Jim Dinn meanwhile says government needs to refocus its priorities.
He questions where government’s “big bold ideas” are. He notes that he is speaking in Colonial Building and the amount of money that went into its restoration. He wonders how else that money could have been spent “had government’s priorities been different.”
Government anticipates having the cheques sent out before Christmas.
