Showing posts with label surplus. Show all posts
Showing posts with label surplus. Show all posts
Flush with cash despite oil freefall, N.L. reports
Wednesday, December 10, 2008 | Labels: budget, labrador, links, newfoundland, oil, surplus | 0 comments »
Despite a slump in world oil prices, the Newfoundland and Labrador government said Tuesday it expects to finish the fiscal year with more than $1 billion in its pocket.
Finance Minister Jerome Kennedy, however, laid out a set of dire warnings to accompany a fiscal update that projects a $1.27-billion surplus for the current operating year.
That's more than double the $544 million that the government expected as a surplus in a budget brought down in April.
Kennedy said the government is earning significantly more revenue than expected this year because oil prices for most of the year were far higher than expected.
However, Kennedy warned that the Newfoundland and Labrador budget will take a beating if oil prices continue to be flattened by a global economic crisis.
"If oil prices continue at below $60 US per barrel, we could be facing a deficit of several hundred million dollars next year and could potentially be facing deficits in the years to come," Kennedy told reporters at Confederation Building in St. John's.
For instance, if oil trades at $60 US per barrel — a figure the government is expecting to hold over next year — it would incur a deficit of about $200 million in the upcoming year. But if oil stays around the $40 level, that deficit would swell to about $600 million.
'They can call me a Grinch'
Finance Minister Jerome Kennedy, however, laid out a set of dire warnings to accompany a fiscal update that projects a $1.27-billion surplus for the current operating year.
That's more than double the $544 million that the government expected as a surplus in a budget brought down in April.
Kennedy said the government is earning significantly more revenue than expected this year because oil prices for most of the year were far higher than expected.
However, Kennedy warned that the Newfoundland and Labrador budget will take a beating if oil prices continue to be flattened by a global economic crisis.
"If oil prices continue at below $60 US per barrel, we could be facing a deficit of several hundred million dollars next year and could potentially be facing deficits in the years to come," Kennedy told reporters at Confederation Building in St. John's.
For instance, if oil trades at $60 US per barrel — a figure the government is expecting to hold over next year — it would incur a deficit of about $200 million in the upcoming year. But if oil stays around the $40 level, that deficit would swell to about $600 million.
'They can call me a Grinch'
Oil boom fuels whopping N.L. $1.4 billion surplus
Tuesday, April 29, 2008 | Labels: budget, labrador, links, newfoundland, oil, surplus | 0 comments »
Newfoundland faces oil windfall
Friday, March 14, 2008 | Labels: labrador, links, newfoundland, oil, surplus | 0 comments »
Newfoundland & Labrador project record $882 million surplus
Tuesday, December 11, 2007 | Labels: labrador, links, newfoundland, surplus | 0 comments »
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