Newfoundland and Labrador budget projects $688 million deficit

Newfoundland and Labrador Finance Minister Craig Pardy addresses reporters after providing an update on the province's finances, in St. John's, N.L., on Tuesday, Dec. 16, 2025. THE CANADIAN PRESS/Sarah Smellie

ST. JOHN’S — Newfoundland and Labrador is projecting a deficit of 688.5 million.

The Progressive Conservative government tabled a $11.5-billion budget forecasting a net debt of $20.8 billion by the end of the 2026-27 fiscal year.

Interest and other debt fees are expected to reach $1.2 billion, accounting for 10 per cent of the province’s total expenses.

The Tory budget outlines more health-care spending and tax breaks, but it includes no plans to balance the books.

Finance Minister Craig Pardy said a plan is needed, but it must balance pressures from the health-care sector and the rising cost of living.

With soaring prices and an expected boost in production, royalties from the offshore oil sector are expected to contribute about 19 per cent of revenues in 2026-27.

This report by The Canadian Press was first published April 29, 2026.