Newfoundland and Labrador faces $1.6B deficit as budget set for April 6

ST. JOHN’S, N.L. – Newfoundland and Labrador’s Finance Minister Cathy Bennett has set budget day for April 6 in a fiscal climate she says is “very serious.”

The oil price crash since mid-2014 has gutted earnings from the offshore oil sector.

The province now faces an estimated deficit of almost $1.6 billion.

Many will be watching to see if Bennett will cut more public-sector jobs and government spending.

Her first budget last spring had sweeping tax and fee hikes — including income-based deficit-reduction levies on anyone earning more than $50,000 a year.

The measures sparked intense anger and protests as the new Liberal government’s popularity nosedived.