New Brunswick’s new Liberal finance minister is projecting a deficit of $92.1-million for the current fiscal year, a reversal from the $40.9-million surplus budgeted last spring by the previous Progressive Conservative government.
Rene Legacy’s second quarter update released today shows a worsening situation since the last update in August, which pegged the deficit at $27.6-million.
He says that as of the end of September, total revenue this year is projected to be $118.8-million higher than budgeted.
Legacy attributes the revenue growth to an increase in conditional grants from the federal government and gains in both personal and corporate income tax.
However total expenses are projected to be over budget by $251.8-million, with the most significant spending coming from the Health Department – which is over budget by $193-million – mainly because of contracts with private firms to provide temporary nurses, also known as travel nurses.
The net debt is projected to be $12.2-billion.