NL Has an Out of Control Deficit Problem #nlpoli

Newfoundland and Labrador don't have a spending problem, we have an out of control deficit problem.

Things were bleak, to say the least before the COVID-19 pandemic hit. Now things are... worse.

Our deficit is expected to hit $2.1 billion this current fiscal year, that's 2,100,000,000. That staggering number is an increase of $1.35 billion.

Someone needs to say it, things have to change. The fact that we needed Ottawa to help us a few months ago just to make payroll is a desperate plea for help.

Cuts need to happen and taxes need to go up, there is simply no other way to get us out of this downward spiral ourselves, we are very close to rock bottom.

We can go on and on about how we got here, but we need to look at how to get out of here.

Oil prices have fallen, because of COVID-19, the tourism sector is dead, and the province needs to stop spending money we don't have.

The budget is expected to be delivered in September.

Can NL go Bankrupt?

The short answer is yes, back in the 1990's Saskatchewan was on the verge of bankruptcy. In this case, the federal government had to step in.

The federal government has an obligation to help the province, but at this point, we need to change how we operate, or we will continue to end up right back where we are now.