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Federal money and sales taxes help pump up New Brunswick budget surplus

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Federal money and sales taxes help pump up N.B. budget surplus
WATCH: The provincial government of New Brunswick has announced it ran a much larger than expected surplus during the last fiscal year. As Silas Brown reports, the figures are already setting the stage for the 31-day election campaign, which kicks off later this week. – Sep 16, 2024

New Brunswick’s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

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Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

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Meanwhile, the province’s net debt, according to the audited consolidated financial statements,  has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

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