ST JOHN’S, NL – In a time of chaos the Newfoundland and Labrador government tabled a “stay the course” 2025 budget as the province prepares for a provincial election. Decidedly not an election budget as there is little new spending and there are no new taxes, increases in taxes or fees.
The short story is a projected revenue for 2025-26 is $10.7 billion, while projected expenses are a record $11 billion. It contains record spending and record borrowing but claims a return to balance budget in 2026. This is when increased oil revenue from Hebron oil field will be in and revenues from the new Quebec Hydro Churchill Falls agreement are expected to flow.
Employment and household income is expected to increase again from 2027 to 2029 with Voisey’s Bay, Churchill Falls, Bay Du Nord, and wind hydrogen projects are expected to enter production.
Government is projecting a $372-million deficit this year to address affordability issues and tariff concern. Which Finance Minister Siobhan Coady could go higher depending on unpredictable trade tariffs from the United States. “It was not the year for us to force going back to balance this year,” said Coady. “Every year it is a balance of where we are with the economy.”
The government has also put aside a $200 million contingency fund to offset tariff losses if needed.
