The budget simulator was designed to illustrate the tough budget choices that will have to be made and to promote a public dialogue on how we can set a sustainable fiscal course. The main revenue and expenditure categories are provided below. For each category, determine how you would make changes and then see what impact it will have on the Provincial Budget.
Please note that the amount provided for each revenue and expenditure category is based on the 2013 Budget Estimates and is accrual based. Additionally, you will note that for the purpose of this simulation exercise, some amounts are fixed.
Where will money come from?
Personal Income Tax:
Provincial personal income tax rates are currently 7.7% on the first $34,254 of taxable income + 12.5% on the next $34,254 + 13.3% on the amount over $68,508. The 2013-2014 estimated amount is $1,113,146,000.
Sales Tax:
The HST rate is currently 13%. The provincial tax is 8%, while the remaining 5% is federal tax. The 2013-2014 estimated amount is $945,530,000.
Corporate Income Tax:
The Corporate Income Tax is 14% of a corporation’s taxable income earned. The estimated 2013-2014 amount was $392,701,000.
Fuel Tax:
Total fuel taxes (Gasoline, Diesel, Auto Propane, Marine Fuel, Aviation Fuel) were estimated at $176,256,000 for 2013-2014.
Tobacco Tax:
Total tobacco taxes (Cigarettes, Fine Cut Tobacco, and Cigars) were estimated at $146,000,000 for 2013-2014.
Payroll Tax:
Payroll tax is 2% of total payroll less the exemption threshold, which is currently $1.2 million. The estimated 2013-2014 amount is $111,301,000.
Vehicle and Driver Licences:
Passenger vehicle registration fee of $140 annually and a driver licence renewal fee of $100, charged every 5 years. The estimated 2013-2014 amount was $74,100,000.
Offshore Oil Royalties (Fixed Value):
For the purposes of this simulation exercise, revenues collected from offshore royalties remain fixed.
Estimated 2013-2014 Amount (used for Simulator):
Federal Revenue Sources (Fixed Value):
For the purpose of this simulation exercise, revenues provided by the Federal Government remain fixed because those amounts are determined by the Federal Government.
Estimated 2013-2014 Amount (used for Simulator):
Other Revenues (Fixed Value):
For the purposes of this simulation exercise, revenues collected from these sources remain fixed. Includes Insurance Companies Tax, Investment Earnings, Other Fees and Fines, Other Provincial Taxes, and Federally Cost Shared Programs.
Estimated 2013-2014 Amount (used for Simulator):
Government Business Enterprises (Fixed Value):
For the purposes of this simulation exercise, revenues collected from Nalcor and the Newfoundland Liquor Corporation remain fixed.
Estimated 2013-2014 Amount (used for Simulator):
Mining Tax and Royalties (Fixed Value):
For the purpose of this simulation exercise, revenues collected from mining tax and royalties remain fixed.
Estimated 2013-2014 Amount (used for Simulator):
Corporate Capital Tax (Fixed Value):
For the purposes of this simulation exercise, the Corporate Capital Tax rate is fixed because it is administered by the Federal Government.
Estimated 2013-2014 Amount (used for Simulator):
How will money be spent?
Health Care:
Funds allocated to administer the Provincial healthcare system (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $2,843,585,000.
Education:
Funds allocated for early childhood learning, the K-12 school system, and public libraries (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $795,350,000.
Post-Secondary:
Funds allocated for the post-secondary education system including, but not limited to, financial support provided to Memorial University and the College of the North Atlantic (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $789,746,525.
Transportation:
Funds allocated to construct and maintain the provincial highways; provide provincial ferry services; manage the provincial government fleet of light vehicles and heavy equipment; operate and maintain the provincial government air ambulances and water bombers; and construct and manage provincial government buildings (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $425,246,000.
Justice:
Funds allocated to administer the courts and operation of the Province’s correctional systems, services to victims of crime, protection of human rights, and Legal Aid services (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $216,562,000.
Assistance to Municipalities:
Funds allocated to support the financial stability and viability of municipalities (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $199,688,000.
Child, Youth & Family Services:
Funds allocated to ensure the safety and well-being of children and youth in the Province (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $172,022,000.
Financial Assistance to Businesses:
Funds allocated to support economic growth within the Province (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $62,037,000.
Tourism:
Funds allocated to support economic growth and employment in the tourism industry, cultivate contemporary arts, preserve the Province’s cultural heritage, and promote recreation and sport (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $54,968,000.
Social Housing:
Funds allocated to develop and administer housing assistance policy and programs (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $46,792,600.
Debt Expense (Fixed Value):
The Interest and other related expenses on the Provinces Debt and unfunded liabilities. The 2013-2014 estimated amount was $847,569,000.
Pension Expense (Fixed Value):
Government’s contribution to the pension fund as an employer and the related expenses for managing the pension fund, including interest (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $659,401,000.
Other (Fixed Value):
General Government and legislative costs and other departmental expenditures not included in the above expenditure categories (program expenditure includes employee salary, benefits and operating costs). The 2013-2014 estimated amount was $241,534,875.
Post Retirement Benefits (Fixed Value):
Government’s contribution to the Post-Retirement Benefits and other related expenses, including interest. These expenditures are to provide benefits (Group Medical and Life Insurance Coverage) to the retired public service pensioners. The 2013-2014 estimated amount was $216,212,000.
Features
Introduction
A general overview of the budget process and pre-budget consultation opportunities Where The Money Comes From
Further your understanding of provincial revenue sources
Further your understanding of government spending requirements Budget Simulator
You decide how to set the provincial budget