Budget 2026 focuses on tax relief, health care and public safety

The provincial government has released its 2026 budget, outlining commitments to improve health care, reduce taxes and invest in safer communities.

Finance Minister Craig Pardy delivered the province’s first budget under Premier Tony Wakeham’s government.

The budget includes a range of affordability measures aimed at supporting individuals and families. Government says more than $200 million in tax relief will be delivered over the fiscal forecast, including a permanent reduction in the provincial gasoline tax, which is expected to save consumers about $67 million annually.

The basic personal income tax exemption will increase to $15,000, while tax credits for volunteer firefighters and search and rescue workers will double to $6,000. The province is also increasing the Seniors’ Benefit by 20 per cent and expanding eligibility for the Newfoundland and Labrador Child Benefit.

Additional affordability measures include extending the Home Heating Supplement Program for households earning $150,000 or less, continuing a 50 per cent reduction in vehicle registration fees for 2026, and gradually lowering the small business tax rate to one per cent by 2028.

Health care spending remains a central focus of the budget, with a total investment of $5.4 billion. Funding includes nearly $8 million to recruit and train nurses and nurse practitioners, $7 million for new MRI machines in Grand Falls-Windsor and Happy Valley-Goose Bay, and $6.5 million to establish a provincial nursing travel team aimed at reducing reliance on agency staff.

The province is also allocating approximately $19 million to expand coverage of eligible medical travel costs, along with $3.5 million to recruit and retain more physicians, including in rural emergency departments.

Government says it will also invest $9 million annually to hire 46 new police officers over two years, along with more than $11 million to enhance court services. Funding is also being directed toward volunteer fire departments and expanding cellular coverage in rural areas.