NL's deficit is now $948 million instead of the $626 million projected this past summer

Finance Minister Craig Pardy provided the update at a news conference this afternoon, saying with revenues of $10.3B, expenditures of $11.3B and mid-year projected deficit to be $948M, there’s no sugar coating that this number is deeply troubling and these structural changes will take time to fix.

The provincial deficit is now projected at $948 million, compared to the $372 million forecast in Budget 2025. Finance Minister Craig Pardy provided the update at a news conference this afternoon, saying with revenues of $10.3B, expenditures of $11.3B and mid-year projected deficit to be $948M, there’s no sugar coating that this number is deeply troubling and these structural changes will take time to fix.
 

Pardy says our economy has proven resilient, but our fiscal situation is more serious than we thought. However, he says there is good news with our economy  posed to well in the months ahead due to weaker than expected tariff impacts, higher oil and mineral production, stronger than expected employment and incomes, and increased consumer spending. We are projected to lead all provinces with 5.3 percent Real Economic Growth in 2025  driven by increased oil and mining production, and there are new opportunities there to stimulate future investment.  

Pardy says inflation rates have stabilized and interest rates are lower. He says household income is forecast to grow by 1.9 per cent largely due to wage gains, retail sales are expected to grow by 4 percent, and Fisheries and aquaculture have performed well, despite global market conditions. Pardy says they’ve started planning for Budget 2026 coming this spring which will outline the approach to restore fiscal balance, while remaining true to election promises of better healthcare, lower taxes and safer communities.