Highlights From Budget 2020 #nlpoli

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.