We are burdening future generations due to our own government spending with high interest charges they will have to later pay for through further punitive tax increases or cuts to public services. This is why we need a Debt Brake law.
A Debt Brake law would cap the level of debt in relation to the size of the economy, and prevent unsustainable spending over an economic cycle. A debt brake law makes sustainability of debt fundamental to fiscal policy.
More importantly, a Debt Brake will ensure economic stability for our families and our future. It reassures entrepreneurs at home and abroad that Newfoundland and Labrador has the fiscal stability to do business. And, by addressing our overspending problem with a debt brake, we will be able to work with our communities to create well-paying jobs and while also ensuring a more efficient public sector.