Central Labrador is a hub of activity and is set in one of the most beautiful regions of our province and country.

Apr 2025

 

Yesterday, the Honourable Siobhan Coady, Deputy Premier and Minister of Finance, released Budget 2025: Smarter. Stronger. Better.

 Fiscal Overview

• Projected deficit of $372 million for 2025-26, which represents three per cent of revenues.
• Balanced budgets are projected for each year in the multi-year forecast starting in 2026-27. The return to balance is delayed by a year to ensure a focus on affordability and addressing tariffs.
• Projected revenues for 2025-26 are $10.7 billion.
• Projected expenses for 2025-26 are $11.0 billion.
• Of the $11.0 billion in expenses, $677 million is 100 per cent federally funded.
• Net debt is expected to be $19.4 billion in the 2025-26 fiscal year.

Economic Outlook

• Various tariffs have been placed on Canadian goods entering the United States and China. The impacts of these tariffs have been broadly captured in the economic forecast.
• In 2025, Newfoundland and Labrador is expected to lead real GDP growth among all Canadian provinces with a forecasted increase of 4.4 per cent
• Capital investment is forecast to accelerate in the medium term, driven by construction activity associated with wind-hydrogen projects, the Bay du Nord deepwater oil project, and Upper Churchill-related construction activity.
• Retail sales are forecast to increase by 2.0 per cent in 2025.
• Population is forecast to rise by 0.2 per cent in 2025, with net natural losses being more than offset by international and interprovincial in-migration.
• Total employment is forecast to decline by 1.2 per cent in 2025
• The unemployment rate is expected to be 10.8 per cent.
• The rate of consumer inflation is expected to increase to 2.5 per cent

Business & Economic Development Highlights

• $400,000 for continuation of the Business Navigator service
• Investments for the food and beverage industry
• $15 million for tourism marketing and air access
• $17 million for settlement and retention services
• $35 million to support businesses and economic development
• $3 million for transit

 

More details on Budget 2025 are available online at gov.nl.ca/Budget2025.

 

“At a time when every dollar counts for business owners, we are pleased there are no increases to taxes and fees and no change to the Small Business Tax rate,” says Julianne Griffin, CEO of the LNCC. “As the LNCC continues to focus on economic immigration and retention aiding employers in Labrador, we will continue to advocate for further investments that respond to consistent barriers including public transit, housing, skills recognition, and outdated policies. We also look forward to receiving more details on the investments to air access, settlement and retention services, and the $35 million for businesses and economic development.”