New Brunswick has recorded its first provincial deficit since 2016-17, according to the Liberal government.
Consolidated financial statements show the province ended the 2024-25 fiscal year with a $104.4-million deficit.
That was compared to a $40.9-million surplus that the previous Progressive Conservative government had budgeted for.
However, it was improved compared to the nearly $400-million deficit the Liberals had projected in the third quarter.
Finance Minister René Legacy told reporters on Monday that expenses came in nearly $417 million over budget.
“Primarily driven by higher operating and personnel costs in the regional health authorities, increased demand for services related to income security and child welfare and youth services, as well as keeping our commitments on nurse retention payments and the electricity rebate,” said Legacy.
The health care budget came in $337 million higher than expected at nearly $4.7 billion, according to the provincial numbers.
Legacy acknowledged this has been a “forever problem” not just for his government but also previous ones.
“I would say that the variability and the uncertainty are going to continue because we have an aging population, and when you’re trying to determine what sicknesses are going to come on next year, how serious they’re going to be, how many people are going to have it, it’s quite the task to be precise,” he said.
Revenue for the 2024-25 fiscal year also came in over budget at more than $271 million, said the consolidated statements.
Around $156 million of that came from the initial payment of a court case agreement with several tobacco companies.
The province’s net debt increased to $12.3 billion at the end of the 2024-25 fiscal year, up from $11.8 billion a year earlier and the first increase since 2018-19.
Legacy said that while the province continues to face many pressures, the government pledges to be a good fiscal manager.
“We have made it clear that we are looking at doing things differently to alleviate some pressures, without sacrificing investments that New Brunswickers need and expect,” Legacy said in a news release.
