The province’s ability to manage its finances has a significant impact on our ability to attract investment, grow our economy and increase productivity. To build and maintain a strong economy, governments must commit themselves to sound management of public finances. A low debt-to-GDP ratio, a “right size” public sector, and reasonable government spending allow government the flexibility to respond to unexpected economic downturns when they occur. Responsible fiscal management and competitive tax policies encourage employers to invest and grow, creating jobs and contributing to a higher standard of living for all Newfoundlanders & Labradorians.
2016 Provincial Shadow Budget Press Conference – April 13, 2016
2016 Provincial Shadow Budget
On April 13th, 2016 on the eve of the 2016 Provincial Budget, the NL Employers’ Council released a Shadow Budget, developed with research conducted by the Conference Board of Canada.
The Shadow Budget recommended a balanced approach of reducing spending levels by $1B over 4 years to 2009 levels combined with revenue generation through a temporary increase in the HST and other consumption taxes. It also recommended the majority of spending reductions in years 1 and 2, to reduce interest payments. This approach would enable government to pay down the deficit quickly, while avoiding the long term economic implications of significant tax increases.
Read the Shadow Budget in position papers below.