NL

Gas tax relief coming in N.L. budget 2017

The temporary gas tax introduced in last year's budget is being reduced today, sources have told CBC News.

Deficit for this year will be under $800 million, sources tell CBC News

Finance Minister Cathy Bennett is releasing the 2017 budget today. (Ted Dillon/CBC)

The temporary gas tax increase brought in as part of last year's budget is getting trimmed today.

CBC news has learned the Newfoundland and Labrador government will table a budget that will show its deficit reduction plan is ahead of schedule.

Government will also partially reduce the temporary gas tax increase that came into effect last June.

Finance Minister Cathy Bennett's second budget will project a deficit of less than $800-million. That's an improvement of more than a billion dollars from her first budget a year ago.

That improved fiscal performance is allowing Bennett to partially roll back the sharp increase in the gas tax. It jumped by 16.5 cents a litre, but CBC News has learned it will be cut by about eight cents a litre in this budget.

A senior government source also says the budget will include minimal job losses.

Live blog

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With files from David Cochrane