N.B. deficit projection jumps to $92.1 million, squeezing Liberal promises
CBC
The new Liberal government of Premier Susan Holt is adding some asterisks to its election promises as it faces a higher-than-expected budget deficit left behind by the previous Progressive Conservative government.
Finance Minister René Legacy released a second-quarter update for fiscal 2024-25 that projects a deficit of $92.1 million as of Sept. 30.
That is $132 million worse than the $40 million surplus that previous PC finance minister Ernie Steeves forecast in his budget in March.
And it's $64.5 million worse than the deficit Steeves himself projected in his final fiscal update at the end of August.
"These results represent a period when the previous government was in place," Legacy said.
To make matters worse, Legacy said, there are indications that the province won't collect a revenue windfall in the third quarter, which is when the federal government remits income tax and sales tax revenue it collects to the province.
In recent years, that revenue has been much higher than expected, leading to a series of record-breaking budget surpluses for the Higgs PC government.
But this year, "it doesn't look like we're going to be in previous years' situations, where revenues are just going to grow and take care of everything," Legacy said.
The shortfall may put the squeeze on some key Liberal election commitments.
The party promised $10,000 bonuses this year for nurses, nurse practitioners and licensed practical nurses as a way to persuade them to stay in their jobs.
That was expected to cost $74.3 million in 2024-25, Holt said while campaigning on Sept. 20, but Legacy wouldn't commit to that figure Friday.
"We have some major commitments that are to be done within the next legislative session," he said. "Some of those will be announced and the appropriate pricing and costing will all come along in the next coming weeks."
Asked about the $74 million figure in the platform, the minister said, "we're still adjusting, we're still working it through, so when the final number comes in, we'll be announcing it."
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