“Smarter. Stronger. Better” is the title of Budget 2025, which was tabled in the House of Assembly on Wednesday afternoon. Includes higher spending, with a projected deficit of $372 million for 2025-26. 

There were no increases in provincial taxes and fees. Provincial spending is projected to be $11 billion, due to the uncertainty of the impact of tariffs, officials say. The projected borrowing requirement for 2025-26 is $4.1 billion, a record high in recent years. 

The deficit for the 2024-25 fiscal year that just ended landed at $252 million, up $100 million from what was projected in last year’s budget.

With U.S. President Donald Trump’s tariffs at front of mind, the provincial budget includes a contingency of $200 million to provide flexibility to counter any U.S. tariff impacts, or other unforeseen events. If that money is spent, it would have to be borrowed and would add to the deficit.

“We don’t know what we don’t know,” Finance Minister Siobhan Coady told about the current volatility of the global economy.

This is the last budget before Premier Andrew Furey leaves office, but Coady said the budget does not include election-year “goodies,” describing it instead as “very stable.”

Oil production is projected to be 83.9 million barrels in 2025-26. Based on independent forecasters, oil price is projected to be US$73 per barrel and the Canadian dollar is projected to average 69.7 cents against the American dollar. 

Coady says there are continued cost-saving measures in this year’s provincial budget for residents, including the 50 per cent reduction on the provincial fuel tax. The 50 per cent reduction off the cost of registering passenger vehicles, trucks and taxis. 

The Seniors’ Benefit and its eligibility threshold will be indexed to the consumer price index, Minister Coady says this will build on the 15 per cent increase over the last three years and cost $63 million.  

Education: 

• More than $400 million total investment in Memorial University. 
• $20 million increase to the Teaching Services budget, to add more than 400 educators and learning assistants in K-12 classrooms. 
• $70.5 million for school infrastructure projects including, new schools in Paradise, Kenmount Terrace, Cartwright, and Portugal Cove-St. Phillips. As well as the ongoing extension and redevelopment of Dorset Collegiate on Pilley’s Island. 
• $110 million to support the $10-a-day initiative.

Health Care: 

• $150 million for digital health resources, including virtual care, health IT system and MyHealthNL.
• $35 million for Family Care Teams. 
• More than $10 million to help reduce backlogs, such as expansion of MRI and CT services. 
• $15.7 million for vaccines for seniors including shingles, RSV, and pneumococcal. 

Fiscal overview: 

• Projected deficit of $372 million for 2025-26, which represented three per cent of revenues. 
• Projected revenues for 2025-26 are $10.7 billion. 
• Projected expenses for 2025-26 are $11.0 billion. 
• Of the $11.0 billion in expenses, $677 million are 100 per cent federally funded. 
• Net debt is expected to be $19.4 billion. 
• Projected borrowing is $4.1 billion. 

Industry and Business: 

• $35 million to support economic development initiatives including research and development, regional development and business growth activities. 
• $16.9 million for broadband and cellular connectivity initiatives.
• $15 million allocated for tourism marketing and air access. 
• Up to $10 million is available for a restaurant loan guarantee program to assist locally-owned restaurants. 
• $1 million to increase wholesale pricing discounts on wine, spirits and ready-to-drink beverages for licensed bars and restaurants.