Our Debt

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 the Province.

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.

Our Choices

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 cuts

  • Should we borrow more money to pay for higher deficits?
    If so, what is a responsible level of borrowing?

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