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Higher Oil Prices Bringing Economic Relief to Newfoundland?

Stockhouse Editorial
1 Comment| November 7, 2018


Times have been tough for Newfoundland and Labrador, but things have changed recently. The last three years have been the worst for the province, economically, since the great depression, but the provincial government reported this week a $136 million difference in its deficit from what was projected in last spring’s budget; from $683 million to $547 million.

According to the province’s Finance Minister Tom Osborne, it’s all thanks to rising oil prices, which have been projected to $74 (USD) a barrel, $11 higher than projected in the spring.

While he promoted the idea of diversifying the province’s economy through different capital projects in mining, aquaculture and tourism, he stressed possible future projects in offshore oil would lead to more financial windfalls. Earlier in summer 2018, the province announced its deepest-ever offshore oil site at Bay du Nord.

However, not everyone is as positive about the province’s future and what oil can do for it. The Newfoundland and Labrador Employers Council, released a public opinion poll the same day the deficit numbers were released, which reported that only 85 of people in the province believe the government can meet it’s 2022/2023 target to return to surplus and 64% are concerned about the province’s fiscal state.




Comments

wajac
When did we start using the term 'return to surplus'. A government has no obligation to run a surplus. A surplus means citizens are being denied services. A government is not a business that has to make a profit.
(40)
November 8, 2018

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