Newly released figures show that New Brunswick posted a surplus of $777.3 million in 2021-22, a turnaround of more than $1 billion from what was originally projected.
The eye-popping surplus is even larger than the $487-million surplus projected at the end of the third quarter. Department of Finance staff say the turnaround is mostly due to increased tax revenues driven by population growth and federal government pandemic supports for individuals and businesses.
“We saw much larger tax revenues than we had projected mostly due to population growth,” said Amy Murdock, the comptroller for the province.
Tax revenue was $716 million higher than projected, with a $305-million jump in HST revenues as New Brunswickers spent more than expected.
About $1 billion was put towards the net debt, which now stands at $12.4 billion, the lowest level since 2014. The 5.6 per cent of revenues spent on servicing the debt was the lowest in 10 years.
This is the second year in a row that projected deficits have turned to surpluses and the $35-million surplus projected for this fiscal year has already grown by $100 million after the first quarter. Finance Minister Ernie Steeves says the province’s improved fiscal footing has cabinet discussing tax cuts.
“(We want) to reduce taxes to a greater degree. We’ve done it over the last two years and we will do it again very soon,” he said.
Steeves said programs to address the housing crisis and homelessness are also being discussed, but wouldn’t provide further details.
“We had a number of meetings with cabinet and caucus as well over the last two, three weeks, looking at a number of different options,” he said.
Liberal finance critic Rene Legacy questioned the consecutive years of surprise surpluses and says the government has missed opportunities to have meaningful funding programs in place now.
“I can understand being off once and a while,” he said.
“There’s a certain point where it’s not abnormal anymore.”