New Budget of Newfoundland Cuts 1,200 Jobs in Light of $564-million Deficit

This article was last updated on April 16, 2022

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The government of Newfoundland and Labrador has decided to cut short the number government jobs and the size of the premier’s cabinet in a $7.6-billion budget tabled on Tuesday, in effort for the province to counter a deficit of $563.8 million in the 2013-14 fiscal year. This deficit is in addition to a shortfall of almost $431 million for this fiscal year, since the net debt has grown from almost $1 billion to $9.5 billion next year.

However, the numbers are better than recent warnings elucidating that the province is facing cumulative deficits which might result in overall $4 billion as world economic troubles cut demand for the province’s oil and minerals. Instead, now the province is predicting the deficit to reach $650.5 million in 2014-15, which is a total of just over $1.2 billion in the next two fiscal years.

Discussing the news about the job cuts, Finance Minister Jerome Kennedy, admitted that “it’s a tough situation,” and “it’s not one that I particularly like, it’s not one that any of us like. But it’s something that we have to do in order to ensure that we can reduce the deficits and return to surplus in three years.” Opposition critics have blamed the majority Progressive Conservative government of meager planning and thoughtless spending. However, Kennedy mentioned during a news conference that “we’ve made great investments in the past,” and “we’ve rebuilt the province, for lack of a better term, and the economy is strong. But, unfortunately, we’ve reached a point where our revenues don’t equal our expenditures.”

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