ST. JOHN’S, N.L. – Newfoundland and Labrador’s auditor general has issued a warning about the province’s financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit.
Denise Hanrahan said today the province finished the previous fiscal year with a net debt of $17.7 billion which, per capita, is double the Canadian average.
She says economic factors suggest the province’s financial position is worsening.
Meanwhile, the Liberal government released a financial update forecasting a deficit of $218 million for the 2024-25 fiscal year, which is higher than the $152 million estimated in the March budget.
The update says revenues are down because of a drop in oil prices and production, both of which were partially offset by a lower exchange rate.
However, it says housing starts are increasing, unemployment is at a near-historical low and the province’s real gross domestic product is expected to grow by 3.3 per cent.
This report by The Canadian Press was first published Oct. 30, 2024.
