Skip to main content

The Globe and Mail

Newfoundland’s deficit $195-million, new audited statements show

Newfoundland Finance Minister Tom Marshall blames the province’s financial shortfall on its reliance on the unpredictable offshore oil industry.


New audited statements say Newfoundland and Labrador's deficit for the last fiscal year was $195-million.

That's slightly down from the $198.8-million deficit it projected in a fiscal update last month, and a far cry from the $430.9-million forecast in last spring's budget.

Finance Minister Tom Marshall credits lower than expected spending for most of the difference.

Story continues below advertisement

Still, the fiscal update last month said a deficit of $450.6-million is projected this fiscal year, despite a historic economic boom.

Marshall blamed the shortfall on the province's reliance on the unpredictable offshore oil industry.

Oil prices and production are volatile and can throw off the earnings that make up about one-third of provincial revenues.

Marshall said last month that net debt is projected to fall to about $9.1-billion this year, down from a high of almost $12-billion in 2004.

About 70 per cent of provincial net debt is unfunded public sector pension plan liabilities.

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨