New Brunswick has a spending problem and needs to take swift action to address it, according to the Canadian Taxpayers Federation.
The province’s second-quarter update shows total expenses for the 2018-19 fiscal year are projected to be over budget by $94.4 million.
Paige MacPherson, the federation’s Atlantic director, told our newsroom reducing spending is not easy but there are lots of savings to be found.
“They can start with eliminating Opportunities New Brunswick and just cutting all corporate welfare in the province,” MacPherson said. “Another area where the government can find savings is eliminating the duplication in the bureaucracy as a result of the language requirements currently.”
News Release: Taxpayers Federation @taxpayerDOTcom reacts to New Brunswick’s second quarter fiscal update – https://t.co/Nyns6Dbriy We’re imploring @BlaineHiggs and @ErnieSteevesNB to take swift action to cut spending. #nbpoli
— Paige T. MacPherson (@paigemacp) December 6, 2018
The update, released on Thursday, also showed the net debt is expected to reach $14.3 billion by March 31, 2019.
MacPherson said the province’s credit rating is at risk of being downgraded, which would increase debt interest payments
“It’s money that can’t be spent on textbooks, can’t be spent on actually paying down the debt or tax relief,” she said. “It’s money that is just going to pay the banks.”
MacPherson said the new Progressive Conservative government appears to recognize the problems ahead but they need to take action now if they want to salvage the quality of life New Brunswickers have.
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Story by Brad Perry
Twitter: @BradMPerry
Email: perry.brad@radioabl.ca
(Photo: Canadian Taxpayers Federation/submitted)
