Newfoundland and Labrador cautioned about growing debt as province touts success

  • Canadian Press

Newfoundland and Labrador's provincial legislature building is seen in St. John's, Aug. 29, 2021. Newfoundland and Labrador's auditor general has issued a warning about the province's financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit. THE CANADIAN PRESS/Sarah Smellie

ST. JOHN'S, N.L. -- Newfoundland and Labrador's auditor general has issued a warning about the province's financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit.

Denise Hanrahan said today the province finished the previous fiscal year with a net debt of $17.7 billion which, per capita, is double the Canadian average.

She says economic factors suggest the province's financial position is worsening.

Meanwhile, the Liberal government released a financial update forecasting a deficit of $218 million for the 2024-25 fiscal year, which is higher than the $152 million estimated in the March budget.

The update says revenues are down because of a drop in oil prices and production, both of which were partially offset by a lower exchange rate.

However, it says housing starts are increasing, unemployment is at a near-historical low and the province's real gross domestic product is expected to grow by 3.3 per cent.

This report by The Canadian Press was first published Oct. 30, 2024.