N.B. economic update: Surplus rises by over $200M on more tax revenue, transfers

FREDERICTON — New Brunswick’s budget surplus has risen by more than $200 million after the government collected more money than anticipated in income and sales tax and federal transfers.

Finance Minister Ernie Steeves estimated in his economic update today that the province will end the fiscal year with a surplus of $247.4 million, up from $40.3 million forecast in last year’s budget.

Harmonized sales tax revenue jumped $346.6 million from the budget, federal grants rose by $63.6 million, and personal income tax revenue increased by $59 million.

The province’s revenue is forecast to rise by $510.5 million — for a total projected revenue this fiscal year of $12.7 billion — and spending is expected to rise by $303.5 million.

Steeves says the higher-than-anticipated expenses are mostly for health care, financial aid for low-income workers, and social services programs. 

He says the province’s net debt is projected to be $12.4 billion at the end of the fiscal year. 

This report by The Canadian Press was first published Feb. 15, 2024. 

The Canadian Press