Newfoundland and Labrador (NL) Budget 2023: New Funding for Economic Growth and Sustainability

The provincial government of Newfoundland and Labrador has announced its Budget 2023-24 plan, titled “Your Health. Our Priority.” With a total estimated spending of $9.8 billion, the budget outlines a comprehensive plan to invest in crucial areas such as healthcare, infrastructure, economic development, education, and climate change. 

Want to learn more about other provincial and federal budget updates from 2023? Check out our 2023 budget highlights page for a collection of reviews.

The Newfoundland and Labrador Budget 2023-24 is the largest the province has ever released and reflects the government’s commitment to build a strong foundation for future growth and success. There are no tax or fee increases in this budget. 

Overall, the budget highlights a commitment to Newfoundlanders and Labradorians to provide long-term funding that supports a stronger, smarter, and more sustainable province. To find the full list of available funding programs for businesses in Newfoundland and Labrador, including Canadian federal funding programs, visit the Atlantic Canada Funding Directory page. 

We have a growing population – the fastest rate of population growth in 50 years, with more children in school. Our economy is performing well, and employment is on the rise. This positive budget is reflective of your tenacity, resilience, and determination to build and support a stronger Newfoundland and Labrador.” 

Siobhan Coady, Deputy Premier and Minister of Finance and President of Treasury Board for Newfoundland and Labrador
Watch our reel cover the top highlights from the Newfoundland & Labrador budget 2023

Your Health. Our Priority. Highlights from the Newfoundland and Labrador Budget 2023 

This article provides an overview of the funding allocations for key areas in the Newfoundland and Labrador Budget 2023-24, including how funds will be used to support the long-term growth of the province’s economy.

“The outlook for the Newfoundland and Labrador economy in 2023 remains positive and is expected to have one of the highest rates of growth among Canadian provinces.” 
– Siobhan Coady, Deputy Premier and Minister of Finance and President of Treasury Board for Newfoundland and Labrador 

Investments in Transforming Healthcare 

The government of Newfoundland and Labrador has committed to investing $3.9 billion over the next three years (nearly 40% of the total budget) into healthcare advancements. This funding will go towards improving access to care, reducing wait times, and increasing mental health and addition services, including but not limited to: 

  • More than $23 million for recruitment and retention of health care professionals; 
  • More than $21 million for the creation of 10 new Family Care Teams across the province to help provide primary care for up to 80,000 people; 
  • $15 million for the development of a new health information system; 
  • $9 million to consolidate 60 separate road ambulance services into a single, integrated service with centralized dispatch; 
  • $7.7 million this year with an additional $9.3 million next year for health care professionals who support self-managed care in the home; 
  • $7.5 million annual increase for community care home professionals; 
  • $6.1 million annual increase for personal care home professionals; 
  • $5 million for the creation of a virtual care program; 
  • $4.4 million for Flexible Assertive Community Treatment teams that will better assist individuals with mental health needs; 
  • $3 million for the creation of a new Cardiovascular and Stroke Institute; and 
  • Approximately $1.8 million for travelling orthopaedic teams to support same-day hip and knee replacement surgeries. 

Community Infrastructure Investments 

The Newfoundland and Labrador (NL) Budget 2023-24 includes $1.8 billion in spending on infrastructure over the next three years. This includes investments in roads, bridges, and public buildings, as well as broadband and cellular infrastructure. This breakdown includes, but is not limited to: 

  • Almost $450 million for the construction of the new regional hospital and adult mental health and addictions hospital in St. John’s; 
  • $225 million in highway infrastructure in 2023, totalling almost $1.4 billion in improvements to provincial roads and highways over the next five years; 
  • More than $50 million for renovations and improvements to healthcare facilities and new equipment; 
  • $13 million for the redevelopment of the emergency department at the Health Sciences Centre; 
  • $7.8 million to continue planning and procurement of a new hospital to replace St. Clare’s Mercy Hospital and a new Cardiovascular and Stroke Institute; 
  • $250,000 for planning of a new long-term care facility in the Bay St. George region; and 
  • $150,000 for planning of a new school of nursing in Western Newfoundland. 

Investments in Economic Growth 

The government plans to allocate $510 million towards supporting economic development initiatives such as job creation, skills development, investment attraction, and small business support. This funding includes: 

  • More than $140 million in federal funding for workforce development to help secure employment for underrepresented groups, such as women, persons with disabilities, and youth; 
  • $35 million for economic development initiatives including research and development, commercialization, investment attraction, regional development, and business growth activities; 
  • $2.2 million to accelerate progress on achieving the goal of welcoming 5,100 newcomers annually by 2026; 
  • $900,000 for enhancements to an online employment application system, which makes it easier for potential newcomers to live and work in Newfoundland and Labrador; 
  • A 10% Manufacturing and Processing Investment Tax Credit to support the capital equipment investment by manufacturing and production, fishery, farming, and forestry sectors; and 
  • Increase the exemption threshold of the Health and Post-Secondary Education Tax from $1.3 million to $2 million. This will benefit 1,250 businesses and encourage economic development. 

Investments to Improve Education 

The provincial government of Newfoundland and Labrador is investing $395 million in funding for education over the next three years. This includes investments to early childhood education, K-12 education, and post-secondary education, such as: 

  • $295 million towards Memorial University’s core operating grant; 
  • More than $69 million for College of the North Atlantic’s operating grant; 
  • $64 million to implement increased wages in response to the wage grid review for Early Childhood Education; 
  • $58.4 million for the Memorial University’s Faculty of Medicine; 
  • Funding increase to the Student Financial Services Program, which will bring the total funding available to post-secondary students to $28 million; 
  • $25 million to maintain school-based reading specialists, teaching and learning assistants, teacher librarians, and English-as-a-second-language teachers; 
  • $12 million to increase the teaching services budget; 
  • Approximately $6 million for education workforce retention and recruitment initiatives; 
  • $3.5 million to expand the Pre-Kindergarten Pilot Program; 
  • $2.7 million for student bursaries; and 
  • $1.8 million for developing new spaces for students. 

Investments Towards a More Sustainable Province 

To support the global transition to a low-carbon economy and reduce greenhouse gas emissions while adopting sustainable business processes, the newly announced Newfoundland and Labrador Budget 2023 includes: 

  • A Green Technology Tax Credit of 20% for businesses with specific capital costs for green activities such as equipment for energy conservation, clean energy generation, and efficient use of fossil fuels; and,  
  • Close to $60 million to reduce greenhouse gas emissions, while addressing energy affordability. This funding includes $27 million in residential rebates (estimated to support 1,840 homeowners) and $30 million for projects in the private, municipal, non-profit, and public sectors under the Low Carbon Economy Fund and Oil to Heat Pump Affordability Program. 

Climate change initiatives around the world and in Canada have created opportunities for Newfoundland and Labrador to become a leader in renewable energy production. 

“We all want to make the best life for ourselves and our family, to leave a stronger, better place for our children and grandchildren.” 
– Siobhan Coady, Deputy Premier and Minister of Finance and President of Treasury Board for Newfoundland and Labrador 

Additional Business and Community Investments 

With so many notable investments within the budget, these allocations focus on individual and business well-being: 

  • More than $158 million allocated to Municipal Operating Grants, Special Assistance Grants, Community Enhancement Program, and the Canada Community Building Fund; 
  • A new, provincial, three-year, $70 million Affordable Housing Program focusing on seniors that will help construct over 850 affordable homes;  
  • $50 million to continue our Offshore Exploration Initiative, which supports near term drilling activity and employment; 
  • $16 million for Rental Assistance programs that will expand housing options in the private rental market for low-income individuals and families;  
  • $13 million for tourism marketing; 
  • $10 million is allocated to grants for low-income homeowners to complete repairs, accessibility modifications, and energy efficiency retrofits to their homes; 
  • $3.8 million is allocated to plant more than six million trees;  
  • $6 million in annual funding for the Innovation and Business Development Fund;  
  • $5.1 million for the Atlantic Fisheries Fund;  
  • $2.25 million is allocated for the Provincial Agriculture Assistance Program; 
  • $1.7 million is allocated for the Mineral Incentive Program, which includes $1.3 million for Junior Exploration Assistance; 
  • The All Spend Film and Video Production Tax Credit is being increased to 40%; and 
  • $125,000 for the Newfoundland Aboriginal Women’s Network.  

Tax Updates to Be Aware Of

The Newfoundland & Labrador budget 2023 document mentioned some tax updates that businesses operating out of the province should be aware of. To see a comprehensive review of the top changes, read this excellent Ryan tax update today.

Learn how to leverage the SR&ED tax credit for technology projects

Government Grants, Loans, and Tax Credit Programs for Newfoundland and Labrador Businesses 

In conclusion, Budget 2023 is the largest investment in the history of Newfoundland and Labrador. There is a strong focus on individual, family, and business health with a goal of building a stronger province for all sectors.

Newfoundland and Labrador businesses can find the full list of funding programs by visiting our Atlantic Canada Funding Directory to review the list of available grants, loans, and tax credit programs. Consider working with our team of Canadian government grant application writers at Mentor Works to find out what programs your NL business is currently eligible for. 

Get to know the Canadian government funding programs available to businesses across Canada by downloading our free Types of Funding guide PDF and learn about funding options for your business. 

Types of Canadian Small Business Funding  

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