Newfoundland and Labrador Finance Minister Siobhan Coady tabled the Furey government’s 2024-2025 budget today, titled “Transforming: Our Health. Our Economy. Our Province.” The budget was intended to be released yesterday but was postponed due to protests outside the Confederation Building. Harvesters have been calling for more free enterprise in the province’s fisheries for weeks, protesting legislated restrictions which limit sales to in-province processors and cap independent processing. A court-ordered injunction prohibiting protesters from blocking safe access to the building allowed Liberal MHAs to take their seats today, however, PC, NDP and Independent MHAs stood in solidarity with fish harvesters and declined to cross the picket line.
The budget document prioritizes health care, affordability, housing, education, and economic development. Nearly 40% of the budget is dedicated to health care spending – a record high of $4.1 billion. Another $1.1 billion is allocated for infrastructure projects that the province anticipates will generate close to $600 million in economic activity.
View the full budget release here.
Fiscal Overview
With projected revenues of $10.3 billion and expenses of $10.4 billion, Budget 2024-25 puts Newfoundland and Labrador in a $152 million deficit, which the government attributes to their continued investments in affordability measures. Last year’s budget forecasted that the province would achieve a surplus by this year; the government is now forecasting that a surplus will be achieved in next year’s budget. The $152 million deficit is significantly decreased from the $1.5 billion deficits that Furey’s government inherited in 2020. The 2024-25 budget implements no new taxes or fees.
Highlights
Health Care
In Budget 2024-25, Newfoundland and Labrador is prioritizing significant investments in family care teams, digital modernization, research and treatment. Currently, 50,000 residents are connected with healthcare professionals by way of 19 family care teams across the province. The government hopes to reach a total of 35 teams. To support this initiative, Budget 2024 allocates $30 million to hire additional healthcare providers and establish new teams throughout the province. Another $15 million is being allocated to improve access to mental health and addictions care. To improve care for seniors, Budget 2024 invests another $10 million into the Seniors’ Well-Being Plan to improve health and social service delivery for seniors.
Budget 2024-25 allocates $620 million over 10 years towards modernizing the health information system, including a $16 million investment for the current year. Additionally, Budget 2024-25 will allocate $5 million towards MyHealthNL, and another $10 million to expand virtual care services.
Communities
To improve access to housing, Newfoundland and Labrador is investing nearly $44 million in new funding to create affordable homes and repair and maintain existing ones, and $26 million to create further supports for the province’s most at-risk populations.
Budget 2024-25 allocates $1.1 billion for infrastructure investments, which the province believes will help generate close to $600 million in economic activity. In order to maintain and improve transportation infrastructure, the budget provides nearly $300 million for upgrades to provincial highways and roads, including completion of the Team Gushue Highway, $29 million for improvements for the province’s ferries and wharves, and an annual expenditure of $30 million to upgrade highway equipment.
To support Indigenous communities and reconciliation, Budget 2024-25 invests $2.5 million for the Inquiry into the Treatment, Experiences and Outcomes of Innu in the Child Protection System, as well as providing funding for the Indigenous Violence Prevention Grants Program, the Newfoundland Aboriginal Women’s Network, and the annual Provincial Indigenous Women’s Gathering.
Economy
To promote competitiveness in Newfoundland and Labrador, Budget 2024-25 reduces the Small Business Tax rate by half a per cent, saving money for approximately 6,200 small businesses. To help attract newcomers, the province is investing more than $170 million to help workers get the skills training they need to meet changing demands for skilled labour. Another $35 million is being invested to support research and development, commercialization, investment attraction, and regional development.
To enhance competitiveness in the mining industry, the budget includes $2.6 million for the implementation of the Critical Minerals Strategy, $1.7 million for the Mineral Incentive Program, including $1.3 million for Junior Exploration Assistance; and $1.6 million for a Labrador-specific geoscience program to support exploration in frontier regions.
The budget also invests close to $20 million in the agriculture sector, to assist farmers with their yields, explore new markets, secondary processing, and reduce reliance on imports.
Opposition Reaction
PC Leader Tony Wakeham has not commented on the 2024-25 Budget. In a video posted earlier today, Wakeham said that “out of respect for the 16,000 people that make their livelihood from the fishing industry in Newfoundland and Labrador, myself and our caucus will not be attending the reading of the budget today.”
NDP Leader Jim Dinn issued a statement expressing his disappointment with the budget, calling it a “performative farce,” with “nothing to show any imagination, any willingness to solve the problems we are all feeling every day.”
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