BR NLBudget – CP

BR NLBudget
Source: The Canadian Press – Broadcast wire
Apr 14, 2016 2:00

ST. JOHN’S, N.L. – Newfoundland and Labrador’s Liberal government is expected to table a bad news budget today.

The grim expectations include tax hikes, job losses and spending cuts as the province tries to offset the damage done by declining oil prices.

Finance Minister Cathy Bennett has asked officials across departments and agencies to brainstorm spending cuts of up to 30 per cent.

Last month the government’s first throne speech warned of hard times as the province confronts the prospect of successive deficits nearing two billion dollars or more.

About one-third of government revenues over much of the last decade came from the offshore oil sector.

The federal budget last month included some help through the seldom-used fiscal stabilization program to compensate provinces for sudden economic slumps.

Ottawa committed almost 32 million dollars to Newfoundland and Labrador.

Still, Premier Dwight Ball has described the province’s finances as “terrible” and says difficult decisions will have to be made.

ked

(The Canadian Press)

INDEX: OIL&GAS ECONOMY NATIONAL ATLANTIC POLITICS