The New Brunswick government has announced a $92.1 million project deficit for the province’s second-quarter fiscal update, according to a release from the Department of Finance and Treasury.
It is compared to the budgeted surplus of $40.9 million, with the net debt projected to be about $12.2 billion.
Finance Minister Rene Legacy said this gives the new government – elected in October – a snapshot of the province’s financial position.
Total revenue is projected to be $118.8 million higher than budget, due in part to an increase in conditional grants from the federal government and gains in both personal and corporate income tax.
However, expenses are over budget by $251.8 million, largely due to the increased healthcare budget. It says the Department of Health is over budget by $193 million, due mainly to travel nurses.
“Our government will use this information as a starting point as we develop our spending plans moving forward,” said Legacy in the release. “Travel nurse contracts continue to put a strain on the health budget, which is something that we need to explore further to see how it will continue to impact the bottom line.”
He said in the release leading with a balanced approach is the Liberal government’s goal, but is committed to delivering improvements in housing, health care, education, and affordability while balancing the books.
The department projects real GDP growth to be at 1.3 per cent in 2024, a bit higher than private sector projections at 1.2 per cent.
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