Deficits Grow as N.L. Ramps Up Spending on Health and Housing

Newfoundland and Labrador’s recent budget, marked by an ongoing deficit, ramps up spending in health care and housing, maintaining its cost-of-living relief measures, including home heating subsidies and reduced fuel prices (an 8.05-cent per litre reduction on gas and diesel). The small business tax rate, which was cut on January 1, 2024, is now reduced from 3% to 2.5%. Retailers will not receive specific benefits, though a $50 million rental housing loan program and $56 million for provincial housing repairs could indirectly aid home improvement businesses. Pharmacies will benefit from 20 new medications added to the prescription drug program. Despite these investments, the province faces a net debt of $17.8 billion, or about $33,000 per person although there is optimism that the economy will rebound this year as real GDP is predicted to be 5.1 percent in 2024.