Provincial budget to be tabled Wednesday amid tariff chaos, Liberal leadership race
Newfoundland and Labrador’s provincial budget for 2025 is set to be unveiled by Finance Minister Siobhan Coady at 2 p.m. NT on Wednesday. This annual event, which is usually a significant political moment, is taking place amidst a backdrop of a trade war, a Liberal leadership race, and a federal election, all of which are overshadowing the fiscal plan.
Premier Andrew Furey will be stepping down less than a month after the budget is announced, with either John Hogan or John Abbott set to take his place. Political scientist Alex Marland believes that Furey still has the opportunity to leave his mark on this year’s budget, potentially creating legacy pieces. However, he is unlikely to make decisions that would pose challenges for his successor.
The federal election and the ongoing trade war with the United States are factors that are complicating the budget announcement. Marland acknowledges that it will be difficult to maintain public interest when the focus is on international and federal issues. Despite this, the economic uncertainty and the upcoming provincial election suggest that the 2025 budget is unlikely to be burdensome on taxpayers.
Data from the University of Toronto reveals that Newfoundland and Labrador had the highest rate of severe food insecurity in Canada in 2023, with 26 per cent of the population struggling to access food. Josh Smee, CEO of Food First N.L., believes that the provincial government’s social support programs are not doing enough to address poverty in the province. Advocacy organizations have been pushing for the indexing of social support programs to inflation, but this has not been implemented yet.
The recent trade war initiated by U.S. President Donald Trump has created uncertainty for businesses in Newfoundland and Labrador. Jessica McCormick, president of the Newfoundland and Labrador Federation of Labour, emphasizes the need for government leadership in supporting working people and alleviating cost of living pressures. Rhonda Tulk-Lane, CEO of the Atlantic Chamber of Commerce, stresses the importance of cutting red tape, eliminating the payroll tax, and reviewing the tax system to support the business community.
Last year’s budget did not introduce new taxes or fee increases, but the deficit exceeded expectations at $433 million. Tulk-Lane emphasizes the importance of accountability and fiscal responsibility, especially considering the province’s history of deficits. Minister Coady’s budget speech will take place on Wednesday afternoon, with stakeholders eagerly awaiting the government’s plans for the upcoming fiscal year.
