The province is now projecting an $89.1-million surplus this year, according to its second-quarter fiscal update released today.
This is compared to the budgeted deficit of $244.8 million.
Finance Minister Ernie Steeves wouldn’t say exactly how the recent tentative CUPE deal has impacted these numbers, “I mean I hesitate to talk a whole lot about the CUPE deal because it hasn’t been voted on yet, it hasn’t been ratified, so we really have to wait for that to happen, but we have taken it into account, and for this year we’ll be doing dome retroactive pay and that comes up in the numbers as well.”
Revenue is projected to be $487.2-million higher than budgeted, “This is mainly due to increased projections for provincial taxes and one-time federal funding. It’s clear that the downturn of revenues did not materialize. Just to let you know, this is not the new norm, we still have to exercise caution.”
Steeves added that total expenses are projected to be higher than budget by $153.3 million
The Department of Finance and Treasury Board projects real GDP growth in New Brunswick of 3.7 per cent for 2021.
In the official opposition response, Liberal finance critic Rob McKee noted how the government must have a balanced approach and address the needs of New Brunswickers.
“We can’t continue down the path of having $400 million surpluses and I believe that is where we will end up this year with the way they are manipulating the numbers.
“There’s $200 million in general government that we believe is a huge overstatement. We look at issues on the other side of the column with respect to revenues – they are underestimating revenues.”
McKee added government needs to spend more on the overall health care system including mental health and long term care along with affordable housing before sitting on a surplus.
You can find the full second-quarter results online.
