The Honourable Thomas Marshall, Minister of Finance and President of the Treasury Board, presented Newfoundland and Labrador’s 2012 budget on April 24, 2012.
The surplus for the past year was $776.4 million, which significantly exceeded the 2011 budget projected surplus of $59.1 million. Despite these results, the province is anticipating a deficit in the 2012 budget as a result of reduced revenue. The expected reduction in revenue is attributed to falling oil royalties and reduced federal funding, which is the driving force behind this year’s projected budget deficit of $258.4 million.
Rather than make deep cuts in departmental spending, the Minister announced that a 10 year review of programs and services will be undertaken, with a view to constraining spending to the rate of inflation.
No changes to taxation were announced in the budget. However, the budget did confirm that a rebate equal to the 8% provincial component of the HST (as announced in the 2011 budget) will continue to be provided for residential energy generated by home heating fuel, electricity, and other energy sources.
Additional information on the Newfoundland and Labrador 2012 budget is available on the province’s web site at: Newfoundland and Labrador Budget 2012.