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FREDERICTON \u2014 The New Brunswick government tabled a $14.3-billion budget March 18 that has been driven deep into deficit by a promised increase in health-care funding and a contingency fund to deal with U.S. tariff threats.<\/p>\n
Finance Minister Ren\u00e9 Legacy\u2019s budget forecasts a $549-million deficit that swells to nearly $600 million when the tariff contingency fund is added.<\/p>\n
\u201cAs this government\u2019s finance minister, it is difficult for me to stand here in front of you today announcing such a significant deficit when one of our campaign commitments was to deliver a balanced budget in each year of our mandate,\u201d Legacy told reporters before tabling his budget in the legislature.<\/p>\n
He said \u201crevenue windfalls\u201d enjoyed in previous years were not materializing and U.S. President Donald Trump\u2019s threats of a sweeping 25 per cent tariff on goods from Canada has cooled off the province\u2019s economy.<\/p>\n
\u201cAs you can imagine, preparing for today, for this speech, with the daily pivoting in direction on tariffs, countermeasures and exemptions, was a challenging task,\u201d Legacy said in his budget speech. \u201cThe challenges will undoubtedly carry on into the foreseeable future.\u201d<\/p>\n
In the Liberal government\u2019s first budget since winning election in October, total revenues for 2025-26 are forecast at nearly $13.8 billion, while total expenditures before the $50-million contingency fund are $14.3 billion.<\/p>\n
While building \u201cflexibility\u201d in the budget for challenges brought on by the trade war, Legacy said the government will honour its main health-care promise, earmarking $4.1 billion for the department, which is about $293 million more than last year.<\/p>\n
Some of the other areas of focus in the budget are education, housing and services for victims of domestic violence and sexual violence.<\/p>\n
The government said it will increase the budget of the New Brunswick Housing Corp. by $18.6 million and plan to build more homes.<\/p>\n
\u201cWe will also create a dedicated provincial sexual violence unit to investigate the most severe and complex sexual violence in human trafficking cases,\u201d Legacy told reporters.<\/p>\n
Richard Saillant, economist and former vice-president of Universit\u00e9 de Moncton, called the budget austere. Revenue growth is only four per cent, while spending growth is at five per cent compared with nearly 10 per cent in previous years, he said.\u00a0<\/p>\n
Demographic changes, including a potential decrease in immigration, further complicate the fiscal situation along with an unpredictable neighbour to the south, he added. Saillant said he was not surprised by the extent of the deficit, calling it \u201ca tough budget for them.\u201d<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n