NL Budget Shows $372M Deficit, Includes $200M Tariff Contingency Fund

April 9, 2025 TruthUSA

The Newfoundland and Labrador government is projecting a deficit of $372 million in its budget for the 2025-26 fiscal year, an increase of approximately $120 million from the previous year.

The budget, totaling $11 billion and unveiled today, includes a $200 million contingency fund to mitigate potential impacts from U.S. tariffs on Canadian exports imposed by President Donald Trump.

However, officials clarify that this fund is not factored into the deficit, and the budget shortfall could expand if any portion of the $200 million is utilized.

The budget outlines that the province plans to borrow $4.1 billion in the 2025-26 fiscal year, pushing its net debt to $19.4 billion.

The deficit for the previous fiscal year, which concluded last month, stood at $252 million, approximately $100 million higher than initially projected.

Once again, today’s budget postpones the government’s goal of achieving a balanced budget, as the document anticipates a surplus in the following fiscal year.