ST. JOHN’S, N.L. — Newfoundland and Labrador’s auditor general has issued a warning about the province’s financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit.

Denise Hanrahan said today the province finished the previous fiscal year with a net debt of $17.7 billion which, per capita, is double the Canadian average.

She says economic factors suggest the province’s financial position is worsening.

Meanwhile, the Liberal government released a financial update forecasting a deficit of $218 million for the 2024-25 fiscal year, which is higher than the $152 million estimated in the March budget.

The update says revenues are down because of a drop in oil prices and production, both of which were partially offset by a lower exchange rate.

However, it says housing starts are increasing, unemployment is at a near-historical low and the province’s real gross domestic product is expected to grow by 3.3 per cent.

This report by The Canadian Press was first published Oct. 30, 2024.

Sarah Smellie, The Canadian Press