Governments in four provinces presented their 2004-2005 budgets today. New Brunswick forecast a surplus, Quebec brought down a balanced budget, while Newfoundland & Labrador tabled a tough budget that eliminates thousands of public service jobs.

Despite the harsh measures, the province will carry a $840 million deficit on a slightly larger $4.1 billion budget for 2004-2005. As a result, the province’s accumulated debt is predicted to hit a record $11.5 billion — the largest per-capita debt in Canada.

In an effort to slash costs, the province plans to eliminate 4,000 public sector positions over the next four years, mainly through attrition.

The number of health boards and school boards will be reduced.

There were no personal or corporate tax increases, but low-income earners will see a modest tax cut.

A sharply different budget was brought down in Quebec, where the government aims at returning $1 billion to taxpayers’ pockets.

Most of the $1 billion in tax relief — $547 million — will come in the form of quarterly cheques for parents of children under 18.

Another $243 million will be spent on supplementing low-income earners and encouraging people to get off welfare, while there will be $219 million in tax reductions when Quebecers file their annual returns next year.

Finance Minister Yves Seguin’s 2004-05 budget also eliminates the provincial sales tax, beginning Wednesday, on diapers, baby bottles and items used for breast-feeding. “The government wants to build a Quebec in which families will flourish,” Seguin said in his budget speech.

The finance minister projected a balanced budget on spending of $54.1 billion. That includes $20.1 billion in health-care spending, up $1 billion from 2003-04.

The provincial debt was projected at $116.4 billion at the end of 2003-2004.

For business, Quebec’s budget will raise the tax exemption on capital to $1 million. Seguin said this will mean that 75% of businesses will no longer pay tax on capital.

In New Brunswick Finance Minister Jeannot Volpe surprised the legislature when he announced that a projected $350 million deficit has become a $2.4 million surplus.

The 2004-05 New Brunswick budget is based on projected revenues of $5,729 billion and expenditures of $5,727 billion — increases of less than 3% cent over last year.

The province’s net debt is holding steady at just under $7 billion.

The big saving is $94 million in what the government calls “departmental efficiencies,” including the elimination of 750 public sector positions.

The government also expects to save $58 million through a new wage policy it hopes to negotiate with public sector unions.

On the revenue side, Volpe said there are no new taxes or tax increases.

Prince Edward Island also forecast a deficit for 2004-2005. Finance Minister Mich Murphy said the province would end the current fiscal year with a deficit of $85.1 million, almost eight times the $11.4 million projected last year.