Health spending helped push New Brunswick deficit to record $1.3B in last fiscal year

New Brunswick’s Finance Minister René Legacy announced on Friday that the province’s deficit for the 2025-26 fiscal year reached a record $1.3 billion. This is more than double the $549 million deficit the Liberal government had initially projected in its March 2025 budget. Legacy informed reporters during a virtual news conference that the province is grappling with rising expenses and lower-than-expected revenues, which have contributed to the financial strain.

The government aims to address this by cutting the civil service by 12 percent over three years, selling government properties, and increasing tax revenue recovery efforts. The province's revenues were nearly $217 million below projections due to lower sales tax and corporate income tax revenues. However, expenses exceeded expectations by $538 million, primarily due to increased spending on health and social services.

The deficit for the current fiscal year, 2026-27, is projected to be even higher at $1.66 billion. Despite these challenges, New Brunswick's net debt to GDP ratio remains relatively low at 27.8 percent, down from 41.2 percent a decade ago. The government continues to pursue major economic development projects, including new nuclear energy initiatives and the expansion of the Port of Belledune, despite the long-term payoffs of these investments.