Newfoundland and Labrador deficit balloons by 51% to $948M

Newfoundland and Labrador’s deficit is expected to reach $948 million, which is a 51% increase from the shortfall projected by the previous Liberal government.

The newly installed Progressive Conservative government says the deficit will push the province’s net debt to $19.9 billion by the end of March.

Finance Minister Craig Pardy said the figures are “deeply troubling,” putting much of the blame on spiralling health care costs, falling oil prices and decisions by the previous Liberal government.

Speaking to reporters in St. John’s, he said the next provincial budget will focus on the party’s three pillars: lowering taxes, improving health care and making communities safer.

He did not respond directly to questions about whether the government would spend money on all of the initiatives his party promised during the recent provincial election campaign.

The previous Liberal government’s budget for the current fiscal year initially forecasted a deficit of $372 million, which the Liberals later revised to $626 million.

The Canadian Press

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