Canada · 8 d ago
Shhewitt · CC BY-SA 4.0 · Wikimedia Commons
Oil revenue nearly erases Newfoundland and Labrador's deficit
Deficit six months ago
700 $ million
The annual deficit, close to $700 million six months ago, could be almost gone. Finance Minister Craig Pardy says it would not surprise him if it disappears.
Budget, April
US$79 a barrel
Monday
US$115 a barrel
The province budgeted for oil at US$79 a barrel in April, and Brent was at US$115 on Monday. Each US$1 rise adds $33 million in royalties.
And us?
Why it matters
The province will cut its gas tax, lowering pump prices by 8 cents a litre from Dec 1 to Mar 31. Pardy promises 80 per cent of unexpected oil revenue for the deficit and 20 per cent for cost-of-living relief.
