|5. OUR DEBT AND
Since Confederation, our total public sector
debt, which includes the debts of our Crown corporations
and municipalities, has grown to almost $7 billion.
Adding the amount needed to fully fund our public sector
pension plans brings the total debt to about $9.5
billion, or about $16,500 for every adult and child in
While our deficit has been decreasing since 1990-91, our
interest charges will still total about $540 million in
1996-97, around $960 for every adult and child, the
highest amount per person of any province in Canada.
Our Credit Rating
It is important to protect our credit rating.
Newfoundland and Labrador has the lowest overall credit
rating of any provincial government in Canada. If our
rating slips below its current level, it will be much
more difficult and costly for us to borrow money.
We have reduced our total budgetary deficit in each of
the last six fiscal years. To protect our credit rating
we must continue to effectively manage our financial
affairs and control our deficit.
Considering our accumulated debt, our annual interest
costs, our credit rating, the size of our projected
deficits and the impact of tax increases and spending
- Should we borrow more money to pay for higher
If so, what is a responsible level of
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