Newfoundland and Labrador’s deficit grows amid lower offshore oil royalties
ST. JOHN’S, N.L. — Newfoundland and Labrador will target big spending in health, education and by the Crown corporation overseeing the bloated Muskrat Falls project as its deficit mounts.
The province is now expecting a deficit of $852 million this fiscal year, up from $778 million predicted in last April’s budget.
Finance Minister Tom Osborne said Tuesday the increased shortfall is largely due to lower offshore oil royalties. They dropped $147 million from budget projections thanks to deflated prices and higher exchange rates.
A Conference Board of Canada economist recently described overspending in the province as “a ticking time bomb.”