The Newfoundland and Labrador government is forecasting a $372-million deficit in its budget for the 2025-26 fiscal year, a jump of about $120 million from the previous year.
The $11-billion spending plan introduced today sets aside $200 million in a contingency fund to offset potential impacts from U.S. tariffs on Canadian exports imposed by President Donald Trump.
But officials say they did not include the fund in the deficit, and the budget shortfall could widen if any of the $200 million is used.
The budget says the province will borrow $4.1 billion in the 2025-26 fiscal year, and its net debt will hit $19.4 billion.
The deficit for the fiscal year that ended last month was $252 million, about $100 million more than initially forecast.
Today’s budget once again delays the government’s hopes of balancing its books—the document anticipates a surplus in the next fiscal year.
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