In fact, this province is in the middle of the pack and that includes esa allowance capi

There has been much public chit-chat these days in our province about the drop in oil prices, and how government should respond. The recent report esa allowance from the Auditor General esa allowance has sounded the alarm bells with regard to Newfoundland and Labrador s dire fiscal situation.
The provincial deficit of $389 million esa allowance for the year ended March 31, 2014 has doubled from the previous esa allowance year and expenses have grown beyond the amount of revenue available to pay for these expenses. Auditor General Terry Paddon further warns that an additional esa allowance deficit is projected for 2014-15 which, combined with weakening global oil prices, may impact the province s ability to return to surplus by 2015-16. esa allowance
The NL Employers Council and the Board of Trade expressed grave concerns about the report, and while singing from the same songbook, contend that the best way to resolve the loss of revenue is to cut spending alleging that our too-big public sector is the root cause of the province s pending economic woes.
The Newfoundland and Labrador Federation of Labour (NLFL) also has concerns about what this alarm will trigger from a government and Liberal esa allowance opposition that has only viewed fiscal problems as being a direct result esa allowance of spending and having nothing to do with the revenue side of the income statement.
In the NLFL’s recent issues-based convention, we invited Diana Gibson from the Canadian Centre for Policy Alternatives (CCPA) to speak to more than 300 delegates from the province’s unions. CCPA s recently released report Newfoundland and Labrador Options for a Strong Economy looks carefully at the drivers of the deficit, the province s strengths and options for addressing economic sustainability. Our economy is in good shape
While it is true that the deficit has increased over the past fiscal year, on the fundamentals, between 2003 and 2013, the province s trends are strong across a range of economic measures. The deficit as a percentage of gross domestic product (GDP) is still a fraction of what it was.
Since 2006, the province s absolute debt decreased as revenues substantially exceeded expenditures, and although slightly higher this year is still stable. Although net debt of the province esa allowance has grown by $737 million in 2013/14 and is forecast to increase again in 2014-15, debt is still down as a percentage of GDP from 70 per cent in the 1990s to less than 25 per cent today and has been relatively esa allowance stable esa allowance at that level.
Provincial government expenditures as a share of GDP have been falling from 30 per cent of provincial GDP through the 1980s and 1990s to a low of 17 per cent in 2007/08 and now stand at approximately 18 per cent of GDP. In short, government expenditures have not kept pace with the rapid growth of GDP and the province has so far not utilized the fruits of growth on public esa allowance spending. esa allowance
The province has reported significant deficits over the past two years but at the same time Muskrat Falls spending esa allowance is on the books as a transfer to Nalcor. This has given rise to a temporary, not a structural deficit. Challenges
There are challenges to our economy. Recent oil price fluctuations are a good reminder of the risks associated esa allowance with resource esa allowance revenues. In addition, our province has a history of public esa allowance underinvestment in social and physical infrastructure, a highly rural population, a difficult geography, higher than average growth in the cost of living, high unemployment, high poverty and outmigration of workers. Overall revenue available is lower, a lot of which is due to tax cuts implemented since 2008, which amount to more than $500 million.
The Federation of Labour agrees that government will have to look at all options available to return to surplus to ensure that programs and services provided to all Newfoundlanders and Labradorians are sustainable for the long term.
We disagree however, with the simplistic options suggested by Richard Alexander of the Newfoundland and Labrador Employers’ Council and Sharon Horan of the St. John’s Board of Trade. esa allowance The benefits of a strong public sector
A strong esa allowance public sector helps the economy weather the volatility of resource fluctuations. In fact, that was a factor in how we weathered the 2009 recession. Cuts in the public sector means the loss of jobs that support local economies all throughout Newfoundland esa allowance and Labrador.
Resource booms are expensive esa allowance and inflationary. Resource revenues are volatile and oil and gas creates relatively few jobs. In fact, public sector spending can create up to 20 times the jobs per dollar invested compared to oil and gas.
Even in the Canadian context, Newfoundland and Labrador is not a high spender on public services, Although provincial program spending is relatively high on a constant dollar per capita basis compared to other provinces, it is not high when considered as a percentage of GDP.
In fact, this province is in the middle of the pack and that includes esa allowance capi