New Brunswick projecting nearly $400-million budget deficit for this fiscal year

The New Brunswick government is projecting a budget deficit of nearly $400 million for the current fiscal year.

The province’s third-quarter fiscal update released today says the $398.9-million shortfall is mainly due to soaring health-care costs, including operating and personnel costs at regional health authorities and contracts for travel nurses.

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Total expenses are projected to be over budget by $409.4 million.

The government also says total revenue is expected to be $30.3 million lower than in the budget because of lower revenue from the harmonized sales tax.

The province’s net debt is projected to be $12.5 billion.

Finance Minister René Legacy warns the province faces “difficult decisions ahead” because of the results of the last two fiscal quarters, adding that the government remains committed to being fiscally responsible.

This report by The Canadian Press was first published Feb. 12, 2025.