The reduced deficit relies largely on oil and gas royalties and transfers from Ottawa.
newfoundland & labrador budget
Government salaries and benefits comprise approximately 42 per cent of the province's spending.
At $2,055 per person, the province's government debt burden is the highest in Canada.
The province's spending is projected to increase by $542 million.
Personal income tax rates are being hiked across the board, between one and three percentage points depending on income.
This year’s deficit is projected at $1.8 billion, equivalent to 6.2 per cent of the provincial economy.