12 March 2008

NL to boost public spending by seven times forecast rate of inflation

An interim supply bill table on Tuesday in the provincial legislature anticipates a provincial budget for 2008 of about $6.0 billion.

Finance minister Tom Marshall told members of the House of Assembly Committee of Supply that the interim supply bill increased spending by 14% over last year's interim supply bill.  The 2007 bill boosted spending by 12% over the previous fiscal year. Marshall said the increase covered inflation plus projected growth in program spending.

The Bank of Canada forecast inflation at 2% for 2008.

The Government of Newfoundland and Labrador spends more per capita in its annual budget than any provincial government in the country, except for Alberta.