Second quarter results indicate New Brunswick on track for budget surplus

New Brunswick Finance Minister Ernie Steeves speaks at a press conference prior to delivering the provincial budget in the Legislature in Fredericton, New Brunswick on Tuesday, March 19, 2019. THE CANADIAN PRESS/Stephen MacGillivray

Second quarter fiscal results released by the New Brunswick government indicate it is on track for a projected surplus of $88.1 million compared to the $23.1 million surplus forecast in the 2019-20 provincial budget tabled in March.

The net debt is also projected to decrease by $232.7 million from budget.

READ MORE: New Brunswick Tory government budget offers surplus, debt reduction

In a news release, Finance Minister Ernie Steeves says despite the positive results, the province is still not in a position to spend more and continues to face serious financial and social challenges.

Steeves says the government needs to get its fiscal house in order to be able to afford essential services in the long term.

READ MORE: N.B. finance minister says provincial budget will be ‘making do with what we have’

The Tory government says revenue is projected to be $101.6 million higher than budgeted, mainly due to a $72-million increase in personal income tax revenue and a $44.6-million increase in revenue related to new federal funding.

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However, total expenses are also projected to be higher than budgeted by $36.6 million, due to $38.7 million in additional expenses related to the new federal funding.

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