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New Brunswick Raises Deficit Forecast by $265 Million in First-Quarter Update
Health and social spending overruns and lower federal revenue are driving the province’s shortfall to almost $1.7 billion, officials said.
- New Brunswick released a first-quarter fiscal update Thursday projecting an annual deficit of $1.7 billion, $265 million higher than the $1.39 billion forecasted in March.
- Lower federal grants and reduced revenue from the Atlantic Lottery Corp drove the province's revenue $35.8 million lower than budgeted, compounding fiscal pressures.
- The Social Development Department is projected to overspend by $123.2 million due to increased demand for income assistance and seniors' services; Health faces $108.1 million in additional operating costs.
- Glen Savoie, interim leader of the Progressive Conservatives, said the overspending raises concerns about future quarters, calling the government's natural gas plan a "Hail Mary."
- Finance Minister René Legacy projected the province's net debt will reach $16.2 billion by March 2027, though officials cautioned the update excludes potential impacts from the Canada-United States trade war.
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The Holt government deficit forecast for the end of the year has increased by $265 million to $1.66 billion.
Coverage Details
Total News Sources9
Leaning Left3Leaning Right1Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 33%
R 17%
Factuality
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