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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