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

Ponoka Victim Services brings support dog to court hearing

One support dog was in Ponoka to provide support for a young victim attending court

Life of Darrell Paulovich honoured at Ponoka memorial

One of rodeo’s biggest fans was remembered during a memorial celebrating his life

PHOTOS: Volunteers add lights to Ponoka’s Centennial Park

Centennial Park in Ponoka will have a festive appearance once again thanks to volunteer supports

PHOTO: St. Augustine teams will head to volleyball provincials

Both Ponoka’s girls and boys teams from St. Augustine School are heading to provincials

Rollovers near Ponoka keep crews busy

Wintry road conditions proved a struggle for motorists on the QE2 highway with several incidents

Six students arrested, charged in sex assault probe at Toronto all-boys school

The school’s principal, Greg Reeves, described the video of the alleged sexual assault as ‘horrific’

Deportation averted for Putin critic who feared return to Russia

Elena Musikhina, a vocal critic of the Kremlin, has been granted a two-year visitor’s permit in Canada

Auditor general takes aim at Liberals’ fighter-jet plan

Suditor general Michael Ferguson is about to release a new report on Canada’s attempts to buy new fighter jets

B.C. couple converts ambulance into a traveling home

The Revelstoke couple plan on touring B.C. ski hills then driving to Mexico

Shots fired near Chicago hospital, multiple victims: police

Police say at least one possible offender has been shot

Calgary bobsled death inquiry recommends infrared technology, safety audits

A judge found the deaths of 17-year-old twins Evan and Jordan Caldwell were accidental and caused by blunt-force head and neck trauma

Wetaskiwin RCMP searching for owner of missing urn

Police say the small blue urn, with label ‘BAIER’ at the bottom, was handed in recently

Examine ‘monstrous’ allegations of forced sterilization of Indigenous women: NDP

The issue of forced sterilizations will also be raised at the UN Committee Against Torture

Canada Post ‘cooling off’ period won’t resolve postal dispute, says CUPW

CUPW national president Mike Palecek says the union isn’t holding rotating strikes to harm the public

Most Read