Province not flush with cash, despite hot economy, Kennedy says

James
James McLeod
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Government facing $1.6-billion deficit in 2013 without budget cuts

Finance Minister Jerome Kennedy at the start of pre-budget consultations.

Finance Minister Jerome Kennedy opened pre-budget consultations this morning by telling people that a "red hot economy" does not mean the government is flush with cash.

He explained that the government gets very little money from income taxes, compared to other sources of revenue, and with the government off equalization, and the Atlantic Accord payments ending, there's less cash coming in.

If the government doesn't make cuts, it is facing a $1.6-billion deficit in 2013 and a similar shortfall in 2014.

Kennedy said he wants to hear from people at the consultations today, but the picture he painted at the start of the day made it clear that they don't have money to throw around.

"There will have to be decreases somewhere," he said.

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  • gord
    February 17, 2013 - 21:57

    This is priceless, we elect people to run our province professionally and financially in our best interests. When they screw up and we demand answers, they want to hear from us with answers to help them. They wouldn't listen to us first time when we wanted to be heard on Muskrat or the privacy bill!