New Brunswick fiscal update projects $89.1-million surplus due to higher revenues

FREDERICTON, N.B. -

New Brunswick's government is projecting that the fiscal 2021-22 year will end in a $89.1-million surplus instead of the $244.8-million deficit that had been estimated in the last budget.

Finance Minister Ernie Steeves released the province's second-quarter fiscal update today, crediting the positive outlook to both tax revenues and federal transfers that were higher than anticipated.

The province's net debt is projected to be $13.4 billion by the end of the fiscal year, a reduction of $63.2 million year over year.

Steeves says the government estimates revenues will be $487.2 million higher than budgeted, for a total of $10.9 billion.

Expenses are also projected to be higher compared to what was estimated in the budget, rising by $153.3 million, for a total of about $10.8 billion.

Steeves says the higher expenses are due to rising government costs and rising health-related costs.

"While this is encouraging, we must keep in mind that some of the cost savings that led to the surplus, such as delayed surgeries, are costs we will have to face in the future," Steeves said in a news release.

"At the same time, there still remains a high degree of uncertainty ahead. For these reasons, we must continue to manage our finances responsibly."

This report by The Canadian Press was first published Nov. 16, 2021.