New Brunswick’s minority Conservative government brought down a balanced budget Tuesday that includes tax breaks and new spending.

The 2006-07 budget is balanced, with a projected surplus of $22.2 million and record spending of $6.2 billion.

The Conservatives are offering corporate tax breaks, a $100 million energy relief program to help consumers deal with soaring heating costs, and funds to improve education and health care.

The budget includes energy tax rebates and a cap on power rates. The proposed initiatives will cost the province just over $100 million.

NB Power, the provincial electrical utility, has applied for an 11.4% residential rate increase. The government plans to cap a proposed electrical rate increase at 8%.

The government will also offer rebates on the provincial share of the 15% harmonized sales tax, which is 8%. The rebate applies to all forms of home heating fuel, from electricity to wood.

For the province’s businesses, the government is once again lowering the corporate tax rate, this time from 13% to 12%.

The corporate tax break will cost the province about $11 million.

Benefits for seniors in the budget include a long-awaited break on high nursing home costs.

Other spending initiatives include money for an additional 240 teaching positions and a commitment to significantly reduce class sizes by at least four students in all grades over the next four years.

On the health front, the province is setting up a five-year, $25-million wellness fund to assist with capital costs for recreational facilities, playing fields and walking trails.

As well, the province will fund an additional 27 physician positions.