FREDERICTON - The New Brunswick government is continuing to slash spending in an effort to return to balanced budgets in time for the next election in 2014.
The $8.2-billion budget delivered Tuesday for 2012-13 includes a $183 million deficit, down from the $449 million shortfall recorded for the budget year ending March 31.
But the budget is forecasting the net debt to hit $10.8 billion by the end of March 2013.
The government says it will reduce the number of public sector jobs by 1,500 through attrition for each of the next three years, replacing only those in positions that are considered essential.
Finance Minister Blaine Higgs says that could be as many as two-thirds of the affected positions. He says the measure will result in savings of about $86 million annually by 2014-15.
Higgs says the government will spend an extra $6.4 million this year in salaries to address pay equity.
"We will provide pay adjustments to a number of female-dominated public sector groups, as well as workers in the private sector that have had job evaluations completed such as childcare workers, home support workers and workers in transition houses," Higgs said.
There's no change in personal income taxes, but the tax on buying a home doubles to 0.5 per cent on June 1, which is expected to generate another $7 million a year.
The government is planning to sell $10 million in government assets this year, and will look at selling the government airplane.
Higgs says the government will also bring in a new royalty structure to ensure it receives its fair share of profits from the development of natural resources, such as natural gas.
Higgs said the government is looking at initiatives for the next two years, including a plan to terminate a program to help support the province's harness racing industry as of March 31, 2013. That will save about $600,000, he said.
