The provincial deficit will be higher this year because of lower income tax and oil revenue, Finance Minister Tom Osborne announced Tuesday.
The projected deficit for 2017-18 now stands at $852 million, up from $778 million projected on Budget Day. That’s because of a net reduction in revenue of $78.8 million. Income tax revenue is down by $150 million, largely because of changes in federal tax reporting, and oil revenue is down by $147 million because prices were low during the first half of the fiscal year.
Increases in corporate and mining tax revenue helped offset some of the losses.
Osborne sent a stern message to agencies, boards and commissions. He says he will be introducing legislation to rein in costs at bodies such as the health authorities, school boards, Memorial University and Nalcor.