New Brunswick projects nearly $500-million surplus for fiscal year

New Brunswick is suddenly in the money. The province is projecting a nearly half-billion-dollar surplus for this fiscal year.

It’s a stunning change from the original projection of a quarter-billion-dollar deficit.

The province’s finance minister defended the dramatic update on Tuesday.

“This is happening across the country,” said New Brunswick Finance Minister Ernie Steeves. “And is attributed to one-time federal transfers, unprecedented federal supports to individuals and businesses, and economies rebounding from the pandemic quicker than expected.”

“It’s unacceptable for a province of this size to have such a huge surplus without adequately addressing the needs of New Brunswickers,” added New Brunswick Liberal MLA Rob McKee. “It’s completely unacceptable.”

There are more than a few ideas about where that money should go, including an end to the double tax handed down to people who rent.

“It’s time, they definitely need to do it,” said Willy Scholten of the New Brunswick Apartment Owners Association. “It’s two-and-a-half times the rest of the country and assessments need to be offset.”

The province’s finance minister all but promised that would happen.

“I know I’ve said that before, crossed my heart, folks, this is going to happen,” said Steeves. “Hopefully this year, we did it in 2020 and COVID-19 hit the next day, and that ruined it, but we will be looking strongly, and are looking strongly at the double tax situation.”

It’s a move supported by the other parties.

“There’s capacity there to make some changes, but we have to ensure those savings are passed onto renters to make sure rent is staying affordable,” added McKee. 

“Eliminate that double tax and couple that with a legislated rent freeze to ensure the tenants benefit from that double tax elimination,” said Kris Austin, leader of the New Brunswick People’s Alliance.

Steeves said the one-time injection of federal money means people should not be counting on such provincial revenue growth in the future.