Source: The Canadian Press

New Brunswick’s deficit is expected to climb to $820.4 million this year – $71.6 million more than expected, the provincial government said Friday.

Finance Minister Blaine Higgs said the debt is expected to swell to $9.6 billion.

Higgs said the province is facing “an unprecedented fiscal challenge” and without changes, the deficit could approach $1 billion by next year.

He also warned that the debt could grow to $15 billion by 2015 without “corrective action.”

In his first fiscal update, Higgs reported that revenues are up $70.4 million because of tax revenues. But he said government spending grew $142 million more than expected last year.

He said the province’s increasing indebtedness cannot be allowed to continue.

“We cannot allow our future generations to be handcuffed by this unsustainable financial situation,” Higgs said in a statement.

“Our government is confronting the problem with an immediate one per cent budget cut between now and the end of March 2011. We realize this cannot solve everything, but we have to start somewhere.”

As part of his fiscal update, Higgs encouraged all New Brunswickers to participate in 2011-12 pre-budget consultations. Higgs will also visit communities across the province, hosting a series of public forums early in the new year.

“As a government, we want to understand the priorities of New Brunswickers and their suggestions on how to directly address this financial challenge,” Higgs said.

“This may include reducing or eliminating programs or services, changing the way some programs are delivered, increasing revenues or selling assets. Everything is on the table.”