The deficit and debt continue to soar in the province, but it’s unclear as to how government intends to tackle the problem. Finance Minister Tom Osborne says layoffs only hurt the economy even though some in the private sector see government as having a spending problem which needs to be curbed

Osborne says even the federal government worked hard during COVID to avoid layoffs.

He says they will become more aggressive with attrition because layoffs disrupt the public service and usually result in the youngest person losing their job because of bumping rights. He says that person and their family is then more likely to leave the province, meaning less money from the federal government for Newfoundland and Labrador.

Opposition Parties Stress Need for Plan to Address Financial Issues

PC Finance Critic Tony Wakeham says it’s clear that Newfoundland and Labrador now has a revenue problem on top of an expenditure issue.

He says our economic engine has stalled and this ship we call Newfoundland and Labrador is about to hit the rocks, unless we come up with an economic plan and get businesses back to work.

NDP Leader Alison Coffin says government is going to have to re-think and re-prioritize as there is no one solution.

She says it will take a very good plan to get us out of this.