Newfoundland Budget : Standing Strong

The 2011-2012 budget for Newfoundland and Labrador was tabled on April 19, 2011. Theprovincial  economy grew in 2010, with a real GDP growth of 5.6%, the highest of all the provinces. Employment has returned to pre-recession levels, and retail sales grew by 3.7%. Housing starts were up by 18% and investment and real exports experienced significant gains. A surplus of $485 million was the 5^th in 6 years, with net debt down 31% since 2004-2005.  The economic outlook for 2011 is healthy, with a $59 million surplus forecast and a further reduction in net debt expected.

With a theme of "Standing Strongî, the budget speech extolled the benefits of the Muskrat Falls and Gull Island hydroelectric projects. They will give the province the ability to provide clean energy to the Maritime Provinces and New England.  Infrastructure, especially in remote areas, will maximize the potential of these projects in terms of job creation and industrial expansion.

Support of traditional fishing communities and innovative practices such as fish farming is maintained so that Newfoundlanders can continue to earn their livelihood from the sea. Agriculture and the forestry sector continue to receive government support through outreach to rural areas. Tourism and Culture are thriving, up 7% in 2010, and visitor numbers are steadily increasing. Newfoundland's Innovation Strategy has strengthened the research and development capacity of the province, with $19 million available to help bring new products and technologies to market. A Climate Change Action Plan and Energy Efficiency Strategy will enable all citizens to take part in greenhouse gas reduction initiatives. And an economic and trade agreement with the European Union will further strengthen economic opportunities, attracting business and investors and giving young people a reason to stay in the province.

Initiatives to support in-home child care small businesses and early learning are included in the budget. Money for schools and post-secondary infrastructure has been allotted and the university and college tuition freeze is maintained.  An Adult Dental Health Care program is being developed and investment in affordable housing, employment and education programs are some of the other poverty reduction measures announced.

Healthcare spending includes a web-based e-mental health service, enhanced long-term care delivery and initiatives to retain healthcare professionals.  Autism, addictions and prevention are given special mention.  Medical facility renovation and construction is planned throughout the province.

New tax announcements include a new, non-refundable child care tax credit beginning in 2011, based upon the child care expenses that are currently deducted from income. The budget document refers to this as an additional measure that will save a taxpayer with $7000 in childcare expenses another $539 in provincial tax. Clawback of tax refunds for income support clients is eliminated in this budget, and the new Residential Energy Rebate of 8%, equal to the provincial sales tax, will provide relief for many facing climbing home heating costs. This comes into effect October 1, 2011 and is available to every household in the province. A new, non-refundable Volunteer Firefighter's Tax Credit in the amount of $3000 has been announced; that will generate a tax saving of $231.00.

The budget lauds examples of cooperation, such as municipal amalgamation, combining and sharing services and strategic partnerships. It speaks of Newfoundland and Labradorians, at home and abroad, who have shaped the success of this province in good times and in bad.