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

Langley community dinner for ‘all walks of life’

Langley local Stacey Wakelin is hosting a community dinner that caters to everyone.

Police dog helps apprehend ‘prolific’ property crime offender near Surrey, Langley border

Douglas Holmes, 47, has been charged with break and enter of a business on the Langley Bypass

VIDEO: Burglars bust windows and loot Brookswood stores

Thieves have hit two Brookswood stores in commercial burglaries in the last month.

COMMUTER ALERT: Serious pedestrian crash closes Pacific Highway

Traffic along 176th Street, 4th to 8th Avenue, is blocked while Mounties continue to investigate.

LETTER: Canada should not be selling weapons abroad

A Langley man is critical of Canada for selling arms that are being used to kill civilians.

People flocking to Vancouver Island city to see hundreds of sea lions

Each year the combination of Steller and California sea lions take over Cowichan Bay

Children’s strawberry-flavoured medicines recalled due to faulty safety cap

Three different acetaminophen syrups part of nationwide recall

Around the BCHL: Junior A cities to host World Junior tuneup games

Around the BCHL is a look at what’s happening in the league and around the junior A world.

International students hit hard by B.C. tuition fee hikes

Campaign seeks regulatory controls be imposed on post-secondary institutions

Trudeau pushes for more Saudi accountability in Khashoggi killing

Prime Minister Justin Trudeau said Canada is still seeking clear answers from Saudi Arabia about what happened to Jamal Khashoggi

School bullying video shows how people with disabilities are devalued: advocates

Brett Corbett, who has cerebral palsy, is seen in a video being stepped while lying in water

CFL will use extra on-field official to watch for illegal blows to quarterback

If the extra official sees an illegal blow that has not already been flagged, they will advise the head referee, who can then assess a penalty for roughing the passer

Older B.C. drivers subsidizing younger ones, study finds

ICBC protects higher-risk drivers, pays for testing costs

5 to start your day

A choice on light rail versus SkyTrain for Surrey, a Chilliwack teacher suspended for touching a colleague’s buttocks and more

Most Read