New Brunswick Finance Minister Cathy Rogers speaks at a press conference prior to delivering the provincial budget in the Legislature in Fredericton, N.B., on Tuesday, January 30, 2018.Stephen MacGillivray / THE CANADIAN PRESS

New Brunswick running 11th straight deficit and increasing net debt

The Fraser Institute said it’s time New Brunswick cuts spending and starts to address the net debt.

New Brunswick’s Liberal government has released a $9.6 billion budget with the province’s 11th straight deficit and a hefty increase in the net debt.

“There is an old adage that says you have to spend money to make money,” Finance Minister Cathy Rogers said Tuesday.

The 2018-19 budget projects a deficit of $189 million and adds $372.3 million to a net debt that’s now set to hit $14.4 billion by the end of March 2019. That’s about $19,050 for every man, woman and child in the province.

The annual cost of servicing that debt is about $675 million.

“The budget includes an additional $73 million in new targeted investments to support economic competitiveness, youth employment and seniors, which will delay a return to a balanced budget by one year, to 2021-22,” Rogers said.

On Monday, Charles Lammam, director of fiscal studies for the Fraser Institute, said it’s time New Brunswick cuts spending and starts to address the net debt.

“When measured as a share of the provincial economy, New Brunswick currently stands as one of the most indebted provinces in all of Canada,” he said, adding that the government is just punting tough decisions to the future.

But on Tuesday, Rogers said the government is in fact meeting the province’s challenges head-on.

“We cannot afford to ignore the urgent challenges facing our province,” she said.

“We could have chosen not to address these additional areas but we think the risk of not giving attention to these urgent matters was greater than the risk of delaying our return to balance one year,” Rogers said.

There are no new taxes or fee increases in the budget, the final one prior to a provincial election set for September.

As announced in November, the small business corporate income tax rate will be reduced to 2.5 per cent effective April 1.

The biggest expenditure is for the Health Department, at $2.75 billion — an increase of 3.7 per cent from last year.

The spending will include the full implementation of the New Brunswick colon cancer screening program and efforts to reduce wait times for hip and knee replacements.

$37.4 million has been earmarked for a climate change fund, with government taking the money from existing gas taxes rather than imposing a new carbon tax.

Federal Environment Minister Catherine McKenna has already discounted that idea.

New Brunswick is also increasing spending for Education and Early Childhood Development by 6.1 per cent to $1.25 billion, while the Tourism budget increases by 4.1 per cent to $62.6 million.

Full details of the spending will have to wait until budget estimates are presented in the legislature.

Kevin Bissett, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Crash snarles traffic on Highway 17

Traffic southbound is seriously delayed and northbound down to one lane on… Continue reading

Sooke players horsing around

Rick Stiebel – Sooke News Mirror Local players are aiming to put… Continue reading

Local and international artists paint murals across Victoria

Sixteen murals are spread out across downtown Victoria as part of the ‘concrete canvas’ project

Federal government announces over $115 million to Royal Canadian Navy

Defence Minister Harjit S. Sajjan was at CFB Esquimalt to announce missile system upgrades

Victoria Police arrest man in relation to indecent act at Beacon Hill Park

The man is known to police, and is facing three charges

PHOTOS: B.C. city wakes up to darkness under wildfire smoke

The rest of the province also dealing with thick haze as smoky skies continue

Five things to do in Greater Victoria this weekend

Puppy yoga, horses, cars, water guns and more make up this weekend’s list of events to see

Authorities mull evacuation order for Zeballos

Smoke billowed from the steep hillsides of Zeballos on Friday evening, as… Continue reading

Safeway union urges prejection of mediator recommendations

Says mediator asks for too many concessions

Fire chases B.C. crews out of their own camp

Crews in Burns Lake had to leave after a wildfire reportedly overtook their sleeping quarters

To address peacock problem, B.C. city moves ahead on trapping plan

Surrey’s new bylaw focuses on ensuring people no longer feed the birds, ahead of relocation

Hospitals to see ‘delays’ in care after losing Saudi students, health group says

About 1,000 Saudi residents called back to kingdom after suspending diplomatic relations with Canada

Bernier diatribe against ‘extreme multiculturalism’ boosts Liberal coffers

Party spokesperson Braeden Caley says online donations doubled, social media engagement quadrupled

‘Disjointed’ system hinders British Columbia First Nations in wildfire fight

More than 550 wildfires were burning in B.C. and crews were bracing for wind and dry lightning

Most Read