Rising oil prices help improve gloomy Newfoundland financial picture

ST. JOHN’S, N.L. – Newfoundland and Labrador’s finance minister says the projected provincial deficit for this year has fallen slightly, thanks to higher than forecast oil prices.

The deficit is down to $1.6 billion from $1.8 billion predicted earlier this year.

Finance Minister Cathy Bennett says oil royalties are almost $100 million higher than forecast and total production is expected to increase to 70 million barrels, or four million barrels higher than the budget forecast.

The average price of oil for 2016-17 is estimated to be $45 US per barrel, compared with the budget forecast of $40 US per barrel.

The mid-year update also indicates program expenses are down by $111 million, but debt servicing costs are up by $131 million.

Bennett says Premier Dwight Ball will soon release a “vision document” with clear plans for growing the economy and providing efficient public services while restoring fiscal balance.