Finance Minister Siobhan Coady will deliver her fall fiscal update today.
This time last year, the province reported a surplus of $479 million, the first time the province reported a surplus in a decade.
Higher-than-expected revenue of $1.3 billion was cited for the change in fortunes, including increases in offshore revenue, corporate tax, and personal income tax.
The province also saw population growth of 1.1 per cent and a drop in unemployment figures.
Yesterday, Bank of Canada Governor Tiff Macklem told the House of Commons federal and provincial spending is unintentionally working against their efforts to lower inflation.
Macklem says government spending aggregate will grow faster than the supply in the economy over the next year, driving inflation up.
Last year’s good fortune resulted in a one-time $500 cost of living benefit paid to all Newfoundlanders and Labradorians.
Finance Minister Siobhan Coady
Minister Coady has already cast doubts on the possibility of a similar pay-out this year.
The minister will deliver her fall fiscal update this morning at 11:30 a.m.