Big deficit, mounting debt but no tax hikes in Newfoundland and Labrador budget
ST. JOHN’S, N.L. — Taxpayers who helped pull Newfoundland and Labrador from a fiscal cliff got a slight break in the latest provincial budget, but debt will soar even as costs are slightly cut.
The $8.1-billion spending plan released Thursday has no tax or fee hikes and trims expenses by $283 million. It forecasts a $778-million deficit, down from $1.1 billion last year.
Higher-than-expected offshore oil royalties helped brighten a bleak financial picture and there were no deep public-sector job cuts as widely feared. But critics were quick to say the governing Liberals could have done more.
“We still have a massive spending problem,” said Richard Alexander, executive director of the Newfoundland and Labrador Employers’ Council. “We still have a fiscal crisis.