Historic annual N.B. deficit grows by $260 million in new fiscal update

New Brunswick's government has announced that its record-breaking deficit for the fiscal year growing by $260 million, according to a recent fiscal update released on Thursday. The province's annual deficit, which reached $1.66 billion, is now projected to push the province's net debt to $16.2 billion by March 2027, raising the debt-to-GDP ratio from 30.8% to 31.3%.

Finance Minister René Legacy stated that the government is working to reduce the deficit through cuts to the civil service and other measures, while keeping essential services running. The Social Development Department was $123 million over its projected budget, mainly due to increased demand for children, youth, seniors, and disability services.

The Department of Health projected a $108 million over-budget situation due to higher operating costs for regional health authorities and pharmaceutical services. Other government bodies, such as the housing corporation and Justice and Public Safety Department, were also reported as over budget during the first quarter. The province’s revenue during the three-month period was projected to be $35.8 million lower, largely due to decreased federal grants and reduced earnings from the Atlantic Lottery Corp. Royalties from the forestry industry, known as the forestry industry’s royalty, were down $6.9 million due to volatile and uncertain market conditions.

However, officials emphasized that the fiscal update did not include the recent trade war escalation between Canada and the United States. Glen Savoie, interim leader of the opposition Progressive Conservatives, expressed surprise at the growing deficit, stating that Premier Susan Holt’s government was "hemorrhaging money."