Second-quarter results show a deficit of $131.4 million
The provincial government has released second-quarter results for the 2018-19 fiscal year.
They show a deficit of $131.4 million, while projecting the net debt will increase by $337.8 million to hit the $14.3 billion dollar mark by the end of March 2019.
The province says total expenses are projected to be over budget by $94.4 million, fuelled by the expenses associated with the 2018 spring flood and the higher costs for social programs such as the Disability Support Services program, the Child Welfare Services program and the housing program.
Government says it brought in $151.7 million in extra revenue, mainly higher due to better than anticipated corporate and personal income tax revenue and an increase in conditional grants.
The finance department projects real GDP growth for the province of 1.1% for 2018, which is unchanged from the forecast in the 2018-19 budget.
THe province reports the Dominion Bond Rating Service downgraded the provinces outlook from a stable to negative trend in February, while maintaining the rating of A (high).