New Brunswick Finance Minister Cathy Rogers speaks at a press conference prior to delivering the provincial budget in the Legislature in Fredericton, N.B., on Tuesday, January 30, 2018.Stephen MacGillivray / THE CANADIAN PRESS

New Brunswick running 11th straight deficit and increasing net debt

The Fraser Institute said it’s time New Brunswick cuts spending and starts to address the net debt.

New Brunswick’s Liberal government has released a $9.6 billion budget with the province’s 11th straight deficit and a hefty increase in the net debt.

“There is an old adage that says you have to spend money to make money,” Finance Minister Cathy Rogers said Tuesday.

The 2018-19 budget projects a deficit of $189 million and adds $372.3 million to a net debt that’s now set to hit $14.4 billion by the end of March 2019. That’s about $19,050 for every man, woman and child in the province.

The annual cost of servicing that debt is about $675 million.

“The budget includes an additional $73 million in new targeted investments to support economic competitiveness, youth employment and seniors, which will delay a return to a balanced budget by one year, to 2021-22,” Rogers said.

On Monday, Charles Lammam, director of fiscal studies for the Fraser Institute, said it’s time New Brunswick cuts spending and starts to address the net debt.

“When measured as a share of the provincial economy, New Brunswick currently stands as one of the most indebted provinces in all of Canada,” he said, adding that the government is just punting tough decisions to the future.

But on Tuesday, Rogers said the government is in fact meeting the province’s challenges head-on.

“We cannot afford to ignore the urgent challenges facing our province,” she said.

“We could have chosen not to address these additional areas but we think the risk of not giving attention to these urgent matters was greater than the risk of delaying our return to balance one year,” Rogers said.

There are no new taxes or fee increases in the budget, the final one prior to a provincial election set for September.

As announced in November, the small business corporate income tax rate will be reduced to 2.5 per cent effective April 1.

The biggest expenditure is for the Health Department, at $2.75 billion — an increase of 3.7 per cent from last year.

The spending will include the full implementation of the New Brunswick colon cancer screening program and efforts to reduce wait times for hip and knee replacements.

$37.4 million has been earmarked for a climate change fund, with government taking the money from existing gas taxes rather than imposing a new carbon tax.

Federal Environment Minister Catherine McKenna has already discounted that idea.

New Brunswick is also increasing spending for Education and Early Childhood Development by 6.1 per cent to $1.25 billion, while the Tourism budget increases by 4.1 per cent to $62.6 million.

Full details of the spending will have to wait until budget estimates are presented in the legislature.

Kevin Bissett, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Squirrels star of guided walk in Saanich park

Going Squirrelly Guided Walk happening Sunday in Francis/King Regional Park

Victoria ranks 20th among 25 Canadian cities for Internet experience

Findings appear in a 2016 report from Canadian Internet Registration Authority

B.C. storm totals $37M in insured damages

The December storm wreaked havoc on B.C.’s south coast

Oak Bay realtor recalls sale of home where family was murdered

Home sellers not always required to disclose violent crimes

Victoria police seek witnesses after assault reported by man in wheelchair

Cops hope to speak with witnesses near Yates and Douglas on Jan. 13 between 1:45 and 3:15 p.m.

Trudeau says politicians shouldn’t prey on Canadians’ fears

The Prime Minister was speaking at a townhall in Ontario

Condo rental bans may be on way out with B.C. empty home tax

Many exemptions to tax, but annual declarations required

Greater Victoria Crime Stoppers wanted list for the week of Jan. 15

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Should people have to license their cats?

The Victoria Natural History Society has sent letters to 13 municipalities in… Continue reading

Body of Canadian miner found after African kidnapping

Kirk Woodman’s body was discovered 100 kilometres from the site where he worked for Progress Mineral Mining Company in Burkina Faso

Study finds more than half of food produced in Canada wasted

The study released Thursday is the world’s first to measure food waste using data from industry and other sources instead of estimates

Snowed-in Austrian nuns insist they’re staying put

Authorities have deployed heavy equipment to clear snow and fallen trees blocking the road to the monastery

B.C. chief says they didn’t give up rights for gas pipeline to be built

Hereditary chief: no elected band council or Crown authority has jurisdiction over Wet’suwet’en land

Thieves steal thousands from 140 Coast Capital Savings members

Online fraud tactics included phising and ‘brute force’ in November and December

Most Read