Newfoundland and Labrador faces a daunting financial situation. In the upcoming budget, there are three actions we suggest to course-correct.
First: reduce spending. The government spends more, per person, than every province except Alberta. Over the next five to eight years, the budget gap could be reduced by moving to the national per-capita spending average.
Second: overturn tax increases from last year that damaged the economy. These include the levy and increases to the gasoline tax.
Third: restore public confidence by creating a realistic plan and sticking to it. Business and consumer confidence declines when government acts unpredictably, so consistency is a vital part of improving the province’s fiscal circumstances.