Taxpayer federation urges Newfoundland and Labrador premier-designate to cut spending

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ST. JOHN'S - An advocacy group for lower taxes is urging Newfoundland and Labrador premier-designate Tony Wakeham to curb spending after a warning this week from a major credit rating agency.

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ST. JOHN’S – An advocacy group for lower taxes is urging Newfoundland and Labrador premier-designate Tony Wakeham to curb spending after a warning this week from a major credit rating agency.

Devin Drover, Atlantic director for the Canadian Taxpayers Federation, says residents don’t need another premier that will worsen the province’s debt.

In a report Wednesday, Morningstar DBRS said Wakeham’s campaign promises could help derail the outgoing Liberal government’s goal of balancing the provincial budget next fiscal year.

Newfoundland and Labrador premier-designate Tony Wakeham is shown during a television interview at a Progressive Conservative campaign party on election day in Stephenville, N.L., on Tuesday, Oct. 14, 2025. THE CANADIAN PRESS/Jessica Stapleton
Newfoundland and Labrador premier-designate Tony Wakeham is shown during a television interview at a Progressive Conservative campaign party on election day in Stephenville, N.L., on Tuesday, Oct. 14, 2025. THE CANADIAN PRESS/Jessica Stapleton

However, the Liberals in past years had also deferred plans to balance the budget, while the deficit this fiscal year is expected to hit $626 million.

Wakeham made several costly campaign promises, including a $93-million pledge to raise the basic personal income tax exemption, before the Progressive Conservatives won a slim majority in Tuesday’s election.

Morningstar says it would consider downgrading Newfoundland and Labrador’s credit rating if the province’s financial situation deteriorates.

This report by The Canadian Press was first published Oct. 17, 2025.

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