On April 9, 2025, Newfoundland and Labrador’s Finance Minister Siobhan Coady tabled the provincial budget for the 2025-26 fiscal year. Framed by economic uncertainty both locally and globally, the budget emphasizes investments in health, education, infrastructure, and affordability measures—while opting for a moderate deficit to support public services and cost-of-living relief.
Economic Overview
The province is forecasting a $372 million deficit. While a balanced budget was within reach, the government chose instead to invest in priorities that ease financial pressure on residents. This approach reflects a broader effort to stabilize the economy while addressing pressing needs across sectors.
Key Budget Highlights
Healthcare and Education
Healthcare and education remain top priorities, with continued investment in facilities, staffing, and accessibility. The government reaffirmed its commitment to improving patient care, reducing wait times, and supporting student success through enhanced programming and resources.
Housing and Infrastructure
New funding has been earmarked to boost housing availability, address homelessness, and improve public infrastructure. Investments in roads, municipal services, and capital projects are expected to generate jobs and contribute to long-term economic growth.
Affordability and Social Supports
To help residents facing rising costs, the budget includes measures aimed at reducing the financial burden on families and individuals. Initiatives include continued subsidies, enhanced benefits for low-income households, and targeted supports for seniors and vulnerable populations.
Strategic Flexibility Amid Global Pressures
With global markets reacting to trade and tariff disputes, Newfoundland and Labrador’s budget includes provisions to help local industries remain competitive and resilient. The government has committed to adapting as needed to protect jobs and maintain economic momentum.
By the Numbers: Budget 2025
Education
More than $400 million has been invested in Memorial University, with an additional $20 million allocated to the Teaching Services budget. This funding supports the hiring of over 400 new educators and learning assistants. A total of $70.5 million has been committed to new school infrastructure in Paradise, Kenmount Terrace, Cartwright, and Portugal Cove-St. Philip’s, alongside upgrades to Dorset Collegiate on Pilley’s Island. Furthermore, $110 million has been allocated to support the $10-a-day childcare initiative.
Health Care
The health care sector will receive $150 million for digital health initiatives, including virtual care, health IT, and enhancements to MyHealthNL. An additional $35 million is dedicated to expanding Family Care Teams. To address service backlogs, over $10 million will go toward expanded MRI and CT services. Additionally, $15.7 million has been committed to fund seniors’ vaccinations, including shingles, RSV, and pneumococcal vaccines.
Fiscal Snapshot
A projected deficit of $372 million is expected for the 2025-26 fiscal year, representing approximately 3% of total revenues. Revenues are forecasted at $10.7 billion, with projected expenses totaling $11.0 billion, which includes $677 million in fully federally funded programs. The province’s net debt is anticipated to reach $19.4 billion, with projected borrowing set at $4.1 billion.
Industry & Business
A total of $35 million has been allocated for economic development initiatives, including research and development, regional growth, and business support. To enhance digital infrastructure, $16.9 million will be used to improve broadband and cellular connectivity. Tourism will benefit from $15 million for marketing and improved air access. Locally owned restaurants may also receive support through up to $10 million in loan guarantees, while $1 million will go toward enhancing wholesale pricing discounts for bars and restaurants.