"When government presented their budget in the spring, the increased federal health care funding, changes to the Atlantic Accord and improvements to the equalization formula were not anticipated," said Mr. Grimes. "As a result of recent meetings in Ottawa, the province can now expect an extra $200-300 million annually to come into the province’s coffers.

"All of government’s budgetary predictions were based on not receiving any new funding sources. It was a very pessimistic viewpoint on the province’s finances and economic future. With this new money coming to the province, government should re-evaluate some of the priorities that were cut in this budget year.

"While I understand that much of this money will be used to pay down the province’s deficit, I would encourage government to re-examine some of their cuts and use some of this new funding to help sustain and improve social programs and government services in the province. This money was not anticipated by government, and it will not negatively impact any future budgetary decisions that will be made in the future.

"The federal government usually provides a financial update or a mini budget when they receive more money than they had budgeted. I suggest this province do the same and update the people of the province as to how this money will be spent and what improvements they can expect as a result of this new funding. It is imperative that government consider the social needs of Newfoundlanders and Labradorians and not only focus on the deficit. This government needs to strike a balance between social needs and fiscal restraint."