Staff Writers
Sep 30, 20202 min
The Provincial Government released the budget this afternoon.
As expected, the provincial deficit has ballooned to $16.4-billion. COVID-19 and crashing oil prices didn't help the situation.
The projected deficit for 2020-21 is $1.84 billion, an improvement of $309 million from the fiscal update provided in July.
Expense projections have remained largely consistent, with an increase of $9 million from the July update.
The projected borrowing requirement for 2020-21 has also been reduced to $3 billion, down $200 million from the July update.
The net debt is now anticipated to reach $16.4 billion in 2020-21, down approximately $300 million from July.
In Budget 2020, there are minimal taxation changes: increased taxes on tobacco and vaping products, a reduction of the provincial portion of the gasoline tax and an increase of the federally mandated provincial carbon tax to $30 per tonne. Changes include:
$25 a day child care will be introduced in 2021.
$2.1 million is being allocated to market the province and provide enhanced supports to assist in newcomer settlement.
A $30 million Small Business Assistance Program to help offset expenses and innovation required to respond to COVID-19. $25 million will be directed towards small businesses and $5 million towards community-based organizations.
Broadening the eligibility under the Tourism and Hospitality Support Program to include professional artists and musicians impacted by COVID-19.
The Budget also includes $1 million in additional funding for ArtsNL.
Discounts will be introduced that will provide savings for the industry of over $1 million.
Close to $100 million is available for such things as personal protective equipment, testing, and mobilizing efforts to support immunization in the event that a vaccine is discovered and safe for use.
14 new drugs for the Newfoundland and Labrador Prescription Drug Program and expanded Insulin Pump Program
Continuing to transform the education system through the Education Action Plan with an investment of $22 million, as well as a $20 million investment to enhance digital learning through laptop and Chromebook purchases for junior high and high school students.
Increased tax on vaping and tobacco products to prevent usage and avoid long-term health care costs.
Over $200,000 for the Seniors’ Social Inclusion Initiative
Infrastructure is important to providing services to residents and growing our economy. Budget 2020 features $609 million in infrastructure funding, a significant investment in local jobs with 95 per cent of employees living in the province full time. This funding supports projects such as:
More than $170 million for provincial highways and bridges, including $39.8 million for the Trans-Labrador Highway;
$23 million for upgrades to existing health care facilities, as well as $22 million to support the replacement of capital equipment;
$16.4 million toward the construction of the adult mental health and addictions facility in St. John’s;
$46 million for ongoing construction of new schools in Gander, Paradise, Bay Roberts and St. Alban’s;
$5.5 million to advance the new correctional facility in St. John’s and expand the Labrador Corrections Facility in Happy Valley-Goose Bay; and
$400,000 to complete an engineering study on the scope and replacement costs of the wharf in Lewisporte to help inform future infrastructure investments.