Budget 2026 — Republic of Newfoundland (Overview)
A responsible, pro-growth plan that protects essential services, invests in infrastructure,
and strengthens long-term resilience. This overview summarizes the 2026 Budget as tabled on
1 November 2025. Unless otherwise noted, all amounts are in
Newfoundland Dollars (NFD).
Budget at a Glance
Economic Assumptions (2026)
- Real GDP growth: 2.3%
- CPI (average): 2.5%
- Nominal GDP: NFD 91.6 billion
- Unemployment rate: 6.6%
Fiscal Summary
- Total revenue: NFD 33.7 billion
- Total expenditure (incl. interest): NFD 33.5 billion
- Budgetary balance: +NFD 0.2 billion (+0.2% of GDP)
Balance Sheet
- Net debt: NFD 16.4 billion
- Net debt (% of GDP): 17.9%
- Sovereign Fund (proj. end-2026): NFD 250.1 billion
Rules & Resilience
- Operating balance over the cycle; prudential debt limits
- SWF rule-based deposits; policy draw capped (≤3.5% of avg. MV)
- Defence allocation: ≈4.0% of GDP, aligned with NATO commitments and North Atlantic responsibilities
Revenue Plan
Revenues reflect diversified tax bases, resource royalties, Crown earnings from hydro and offshore energy,
and investment income. There are no broad-based rate increases; administrative improvements enhance
compliance and predictability.
| Category | NFD (billions) | % of Total |
|---|---|---|
| Personal income tax | 7.4 | 22.0% |
| Corporate income tax | 4.7 | 13.9% |
| Consumption taxes | 5.4 | 16.0% |
| Resource royalties & dividends | 9.1 | 27.0% |
| Hydro & energy exports (Crown) | 3.6 | 10.7% |
| Other & investment income | 3.5 | 10.4% |
| Total | 33.7 | 100% |
Selected Revenue Measures (2026)
- Targeted R&D super-deduction and accelerated CCA for clean manufacturing (time-limited).
- E-invoicing rollout to improve VAT compliance in accommodation and tours.
- Resource stabilization rule continues; windfalls above reference prices flow to the SWF.
Expenditure Plan
Program spending prioritizes health capacity, education and skills, defence at approximately 4% of GDP,
transport and energy infrastructure, fisheries science and enforcement, Arctic and northern services,
and digital public services—while maintaining a modest surplus.
| Function | NFD (billions) | % of Total Expenditure |
|---|---|---|
| Health & Social Services | 6.6 | 19.7% |
| Education & Research | 4.1 | 12.2% |
| Defence & National Security | 3.7 | 11.0% |
| Transport & Infrastructure | 3.5 | 10.4% |
| Energy, Resources & Environment | 1.9 | 5.7% |
| Fisheries & Oceans | 1.6 | 4.8% |
| Innovation & Digital Services | 1.3 | 3.9% |
| Foreign Affairs | 0.7 | 2.1% |
| Other ministries & contingencies | 6.6 | 19.7% |
| Debt service
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