Newfoundland and Labrador is projecting a $2.1-billion deficit for fiscal 2020-21 – an increase of $1.35 billion from last year’s budget.
The grim figure was presented in a fiscal update delivered today by Finance Minister Tom Osborne, ahead of a budget expected in September.
Osborne says the soaring deficit is the result of a significant drop in world oil prices and costs associated with the COVID-19 pandemic.
![Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.](https://globalnews.ca/wp-content/themes/shaw-globalnews/images/skyline/money123.jpg)
Get weekly money news
The finance minister says expenses for the fiscal year will jump by $720 million, including an increase of $261 million in health care, $90 million of which is related to the pandemic.
![Click to play video: 'N.L. premier denies reports Liberal party pushed him out'](https://i2.wp.com/media.globalnews.ca/videostatic/news/coerr03brq-j5hi0kyrd9/0218_ross.jpg?w=1040&quality=70&strip=all)
A $200-million contingency fund that was approved in March has also contributed to rising expenses, with $118 million spent so far.
Offshore oil revenue is projected to decrease by $631 million, mainly due to a $560-million drop in royalties.
- Liberal plan for 30-year mortgage amortizations kicks in. Here’s who qualifies
- Capital gains changes will bring in billions — but less than Ottawa expects: PBO
- Ottawa’s consultation for tariffs on Chinese EVs ends. What comes next?
- Fixing up your home? Health Canada has recalled these paint products
Comments