FREDERICTON, NB – New Brunswick’s auditor general says the province’s balanced budget legislation is essentially worthless when it comes to managing the finances.
Mike Ferguson says the new provincial government should review the legislation to make improvements.
Ferguson has also said he considers the legislation to be, quote, "a political rather than a financial management tool."
New Brunswick’s Fiscal Responsibility and Balanced Budget Act was created by the Conservative government in 2005.
It requires that the province’s expenses not exceed revenues over a three-year fiscal period.
The latest period runs until March 31st of 2011.
In 2010 the province’s deficit was $738-million.
And the new government of Premier David Alward is saying it will take years to balance the budget.
That position would eventually violate the legislation.
Tory Finance Minister Blaine Higgs couldn’t be reached for comment Tuesday, but his department released a statement.
Part of it says, quote: "The current government indicated in its platform that over the course of their mandate that they will introduce new laws to start down the road to balanced budgets within four years."
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