In 2006, Newfoundland and Labrador became the second Canadian province to introduce a formal action plan to reduce poverty. The government implemented a comprehensive poverty reduction strategy with the clear goal of transforming the province into the region with the lowest poverty rate in the country by 2014. The release of the first progress report in 2009 showed significant improvements, reducing the percentage of those living below the Low-Income Cut-off (LICO) by nearly half. Newfoundland and Labrador has officially been acclaimed as having the lowest level of poverty in the country as highlighted by 2013 LICO statistics.
The 2016 budget announced massive “expenditure reductions” in the hopes of balancing the budget. Simply put, it is cutting back or “restructuring” multiple programs. It is hoping to save $251 million from scaling back services. These cuts range from early childhood education to transportation and agriculture.