Budget 2018 Highlights #nlpoli

Budget 2018 was released today.

The revised deficit for 2017-18 is $812 million, which is an improvement from the mid-year forecast. This includes severance expenses under the new collective agreement totaling $37 million.

The deficit for 2018-19, is projected as $683 million; this includes $52 million for the remaining one-time severance expenses. This is an increase from the Budget 2017 forecast of $644 million. Budget 2018 includes revenues of $7.67 billion, an improvement of $12 million from the Budget 2017 forecast, after considering the oil revenue risk adjustment.

The price of oil is forecast at US$63 per barrel, and the US to Canada exchange rate is forecast at US$0.79. These are based on the forecasts of multiple industry analysts.

Budget 2018 includes expenses of $8.36 billion. When the 100 per cent funded programs are reflected, the total net expenses are $8.29 billion, which is lower than the original forecast at Budget 2017.

Some Highlights:

• 619.7 million infrastructure investment, which is part of a $2.5 billion five-year plan that will create 5,300 person years of employment per year.

• $6.9 million to action recommendations from the Premier’s Task Force on Improving Educational Outcomes.

• $1 million in 2018-19 towards a new Home Purchase Program, which will provide $3,000 grants towards the purchase of a newly constructed or never before purchased home under $400,000.

• $6.1 million towards the replacement of the Waterford hspital and to expand mental health community support services.

• Approximately $61.6 million for early childhood development, over the next three years – through a bilateral agreement with the Federal Government. This includes $22 million to implement the 10-year Child Care Strategy.

• $8 million for a new Corner Brook Hospital.