NL

Provincial debt set to soar by $4 billion within 2 years

Over $4-billion dollars will be tacked onto the provincial debt in next few years.

The provincial government is projecting the budget shortfall for this year and the next two years will total about $4-billion dollars.

Finance minister Jerome Kennedy made the prediction on Wednesday.

 "Essentially the budget, or the deficit, for 2012 is projected at mid-year to be $725 million. In 2013, we expect, or it's projected right now, to be $1.6 billion dollars and in 2014 - $1.6 billion dollars. We have a serious situation right now," said Kennedy.

The provincial government's pre-budget consultations are set to begin on Thursday in Carbonear.