The New Brunswick government says its investments in health care have helped push the budget into a record deficit.
Introduced on Tuesday, the budget’s $1.4-billion deficit is the largest in the province’s history, according to Finance Department staff.
That’s largely due to health-care spending, which will rise by $710 million, or 17.4 per cent.
Finance Minister René Legacy said health care was the centrepiece of the $15.6-billion budget.
“This is a budget that reflects the voices of New Brunswickers,” Legacy told reporters. “It is a budget that makes generational investments in health care and lays the foundation for a sustainable and prosperous future for all.”
However, other sectors of the government are facing cuts, notably the civil service, which is scheduled to be trimmed by 12 per cent over three years. The government says it expects to reach those job reductions through attrition, projecting to save $100 million over the three-year period.
The Liberal government of Premier Susan Holt also says it is looking to raise revenues to help the province’s finances. The government says it will add a toll by 2028 for out-of-province vehicles on the Trans-Canada Highway by Aulac, N.B., estimating it would bring in $10.4 million annually.
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Legacy says the next two budgets will be in deficit, forecasting a $1.3-billion shortfall in the 2027-28 fiscal year and a $1.26-billion deficit the following year.
Here are some highlights:
- Total spending is forecast to be a $15.63-billion, with a projected deficit of $1.39 billion.
- Finance Department staff say the deficit would be the largest in the province’s history.
- The budget includes a plan to shrink the civil service by 12 per cent over three years, which is expected to save a total of $100 million.
- New Brunswick is projecting deficits for the next three years. This includes a projected $1.3-billion shortfall in the 2027-28 fiscal year and a $1.26-billion deficit the following year.
- The province’s estimated net debt for the year ending March 31, 2027 is $15.9 billion.
- The province proposes to increase health spending by $710 million, up by 17.4 per cent, compared to last year.
- The province is expecting to spend $4.8 billion in total on health care over the next year.
- Under the health budget, the government is proposing to spend $170.4 million to cover the costs of a new compensation model for doctors that incentivizes patient attachment and participation in collaborative clinics.
- The budget unveils plans to introduce a new toll by 2028 for out-of-province vehicles on the Trans-Canada Highway by the Nova Scotia border in Aulac, N.B., estimating it will bring in $10.4 million annually.
- New Brunswick plans to phase out its provincially-run field veterinary services over three years, handing off animal medical care to private providers.
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