The province’s auditor general says there is considerable risk around returning to surplus by 2022-23.

Julia Mullaley released her annual reports to the House of Assembly on Thursday, with a grim outlook on the province’s finances.

Government still wants to return to surplus by 2022-23, but admits it will be challenging.

Mullaley says on the expenditure side, to reach surplus government would have to pull down expenses to the tune of over $570-million. Something she calls significant for the province to do. She says at the same time they’re trying to pull expenses down, there is a rate of inflation that isn’t being kept up with.

Therefore, the required expenditure cuts aren’t addressing inflation or other pressures like healthcare.

Premier Still Confident in Return to Surplus

Premier Dwight Ball says government will continue to work on a balanced approach when it comes to returning to surplus.

Ball says they’ve been successful in diversifying the economy, but it takes time. He states that the province will not go bankrupt.

The Premier says it will take time to get out of this, along with help and support from the federal government and are talking about things like Fiscal Stabilization Programs. He says the goal of returning to surplus by 2022-23 could slip for a short period time, but their focus is on returning to surplus, and keeping the program they put in place in 2016 on track.

Ball is confident it can be done.

The Premier says they can’t do it simply but cutting services that people depend on. By doing that, it just amplifies the problem that already exists.

He says they will continue to work on the balance, while investing and creating jobs for Newfoundlanders and Labradorians.

This is not a province that will go bankrupt, says Ball. “We’ve faced challenges, and we’re going to get through them.”