Source: The Canadian Press
New Brunswick’s deficit is projected to surpass $800 million for this fiscal year — at least $50 million more than last forecast, the province’s finance minister said Friday.
Blaine Higgs said the precise figure of the deficit will be revealed in a fiscal update to be released next Friday.
“We’re hitting over the $800-million range,” Higgs told The Canadian Press.
Higgs said all measures to improve the province’s fiscal situation will be examined during public budget consultations, but raising taxes should be the last possible option.
He said reining in spending must come first.
“If we don’t make better decisions, if we don’t become realistic about our demands, then there’s a never ending thirst to raise more revenue in the form of taxes, and that can’t be the end solution,” he said. “We have to address every other issue first.”
He reiterated the Tory party’s promise not to increase the harmonized sales tax, but said all other options should be discussed.
“We have to make sure that all of the options are on the table so people understand what we’re up against,” he said. “It’s a case of asking citizens options … ‘Do they want this or this?”’
He said some large capital projects such as the proposed $20-million highway expansion between Saint John and the Kennebecasis Valley could be scaled back when he releases a capital budget next month.
In their last budget, the previous Liberal government forecast a deficit of $749 million. Higgs said his latest deficit figure is as of the end of September.
Liberal finance critic Donald Arseneault said the deficit forecast is always changing and the former government was burdened by the economic pressures of the global recession.
But Arseneault said he wants to have a closer look at the fiscal update when it’s released.
“We want to make sure it’s up until the end of September and that new spending isn’t involved there,” he said. “As we all know the budget only concludes on March 31 and we want to ensure that many of the campaign commitments that (the Conservatives) made are not included in these numbers as well.”
All government departments have been ordered to cut spending by 1% this year, and 2% in each of the following three years.
Higgs said he expects to meet the target for this year, and all suggestions from the departments are now being analyzed.
New Brunswick deficit swells above $800 million
Finance minister reiterates promise not to increase HST
- By: Blaine Higgs
- November 19, 2010 December 14, 2017
- 15:20