April 12, 2018
Deficit reduced to $683 million, real GDP forecast to decrease by 0.8%.
On Tuesday, March 27, 2018, the Honourable Tom Osborne, Minister of Finance and President of the Treasury Board for Newfoundland and Labrador delivered a budget for 2018-2019 with a projected deficit of $812 million, down from $2.7 billion in 2015-2016. Debt Charges and Financial Expenses increase by $471.6 million over 2017-2018, most other expenditures flat.
Of Interest to Credit Unions
- Work continues on the independent review of the province’s tax system. We expect the recommendations will be considered for Budget 2019 and include social and economic factors, as well as possible tax incentives. CCUA will continue to track this announcement.
- Ease the payroll tax on employers by increasing the threshold from $1.2 million to $1.3 million, which allows an additional 50 employers to be removed from this obligation and reduce the tax up to $2,000 per year for the remaining employers.
- $18.8 million to leverage an additional $12.7 million in federal funding under the multi-year Small Communities Fund of the New Building Canada Fund to support clean water and wastewater systems, as well as roads and community centres.
- A new Home Purchase Program where government will provide $3,000 grants towards the purchase of a newly constructed or never before purchased home under $400,000.
- A First Time Homebuyer’s Program, that provides down payment financing and also includes a $2,000 grant for eligible first time home buyers.
- Decrease on automobile insurance tax by a minimum of five per cent over the next four years.
- $73.1 million to maintain current tuition levels for Newfoundland and Labrador students.
- $65 million for the Newfoundland and Labrador Income Supplement. This program benefits approximately 155,500 individuals and their families. (Phase in for this program begins at $15,000 and phase out is at $40,000.)
- $56 million for the Newfoundland and Labrador Seniors’ Benefit, which was increased in 2016. This program benefits approximately 47,000 seniors and their families. (Seniors with a family income of $29,402 are eligible to receive the maximum benefit of $1,313 per year.)
- Population is expected to remain stable at 528,817.
- The Canadian Real Estate Association forecasts sales in the province to rise 0.1% and the average resale price to fall 2.7%. Housing starts are forecast to decrease by 10.1% to 1,259.
- Approximately $21 billion in project spending is planned or underway in the province according to the Inventory of Major Capital Projects.
- Household income and retail sales are both expected to rise by 0.7%.
- Total revenues are forecast to be $7.67 billion:
- Total expenses are forecast to be $8.36 billion:
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