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.
Newfoundlanders & Labradorians now have the highest personal tax burden of any province in Canada.
Before increasing taxes to hardworking Newfoundlanders & Labradorians, government must ensure tax dollars are spent in the most efficient manner possible.
In Budget 2016 government passed the deficit burden on to citizens through tax increases that amount to $883 million. They found $251 million in cost savings internally.
- We have the largest public administration per capita in the country.
- Since 2007 program spending has increased approximately 46% – from $4.97 B in 2007/08 to $7.28 B in 2015/16.
- We spend $2300 more per person on non-health related spending than the average of the other Atlantic provinces.
- Public administration wages in NL are 27% higher than the average of their counterparts in the other Atlantic provinces.
- Wages in education are 21% higher than the average of the other Atlantic provinces.
- Government spending will actually increase by 3% in 2016-17.
