Province Examining Fiscal Situation Before Rolling Out Affordability Measures
The government of Newfoundland and Labrador is analyzing its fiscal health before finalizing affordability measures for residents this fall. Bolstered by high oil prices, the province is balancing debt reduction with potential financial support for citizens.
Why it matters
This highlights the economic impact of volatile global energy prices on regional government policy and public welfare planning.
The province is conducting a “thorough analysis” of its fiscal situation before announcing affordability measures for Newfoundlanders and Labradorians sometime this fall.
The coffers have been bolstered by rising oil prices, benefitting to the tune of $33-million for every dollar above the budgeted benchmark.
The spring budget forecast oil prices at $79 US a barrel, and as of this morning, it has surpassed the $100 US a barrel mark. That means more than $500-million in additional revenue to the province.
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