N.B. government projecting $549 million deficit in budget

Playing null of undefined

Finance minister on NB budget

NB announces $549M deficit

In its first budget since winning the election last fall, the New Brunswick Liberals are projecting a deficit worth more than half-a-billion dollars as the province grapples with the ongoing trade war with the United States.

In its 2025-2026 budget, titled “Driving Change, Delivering Progress,” the government says the projected deficit is $549 million. In last year’s budget, the Progressive Conservative government projected a $40-million surplus, but last month the Liberals said that number reversed course to a $398.9 million deficit.

“This is a budget that reflects the changing economic environment and the need to respond strongly to our challenges, while keeping our promise to New Brunswickers to invest in areas that will make a meaningful difference in their daily lives,” said Finance and Treasury Board Minister René Legacy in a news release. “We will not keep putting off critical investments that are desperately needed now.”

The government’s multi-year plan is projecting deficits into the 2028-2029 fiscal year. They are expected to hit $447 million in 2026-2027, $304 million in 2027-2028 and $144 million in 2028-2029.

Green Party Leader David Coon said the Liberals' initial plan to have no deficits was unlikely.

“For the past 10 (years), both Conservative and Liberal governments have neglected public services like health care, kicked it down the road,” he said. “The chickens have come home to roost. We’ve got to make the investments in addressing those services that are vital to New Brunswickers.”

The net debt for now sits at $12.5 billion. It is expected to reach $13.4 billion by 2026.

“There’s no doubt that we’d like to get back to balance (a balanced budget) as much as possible but we’re also not reinventing the wheel here. Pretty much every other jurisdiction in Canada is going to show up with some kind of deficit budget,” said Legacy, during an interview with CTV Atlantic’s Todd Battis.

“The advantage that we have in New Brunswick is our debt ratios, our net debt to GDP is still the lowest east of Saskatchewan, so we have a little bit of room to invest. And the reason we’re so low is maybe over the last few years we missed some opportunities to invest, it just went on the debt, and those needs are coming back to us. We need to invest in some programs in health and education.”

Legacy says some existing programs are not getting the desired results the province was expecting when they were created. He says the province’s goal is not to change its results, but change the manner in which they are achieved.

“In the weeks to come, we’ve engaged different departments and other ministers to say relook at this in a strategic way and try to get better results,” Legacy said.

Interim Progressive Conservative Leader Glen Savoie said the deficit projections might worsen as people tighten their personal budgets amid the trade war.

“If that happens, you’re going to see a worsening of the budgetary pressures because there’s going to be less revenues, and if they don’t pull back on their spending -- which it just seems they’re not intent on doing -- they’re going to miss their deficit projections,” he said.

In light of the tariffs implemented by President Donald Trump, the New Brunswick government is introducing a $50-million contingency fund. The Liberals have already established a $112-million support package for businesses impacted by the tariffs.

“The economic realities we face have changed significantly over the past few months,” said Legacy. “Even amid the uncertainty caused by ongoing trade and tariff threats, we remain committed to investing in New Brunswickers and their priorities while maintaining strong fiscal management.”

The government is projecting 1.1 per cent real GDP growth for 2025. Last year’s real GDP growth was pegged at 0.7 per cent.

Projected revenues sit at $13.8 billion while spending will reach $14.3 billion.

Health care

The Liberals say they are spending nearly $293 million more on health care than last year’s budget, which allocated nearly $3.8 billion for the health system.

The government has committed to making at least 30 local family health teams in the next four years and creating at least 10 team-based clinics this fiscal year.

Other highlights include:

• $28.4 million to modernize and transform outdated health-care technology system
• $15.9 million for physicians to maintain their community-based practices
• $2 million for recruitment of national and international health-care professionals
• more than $1.9 million to increase access to fertility treatments
• $462,000 for HPV tests as a primary screening test for cervical cancer
• $150,000 to eliminate barriers to midwifery training

Housing, child care, nursing homes

Beyond health care, the province is spending:

• $200 million over five years to subsidize more than 17,000 child-care spaces
• $22 million for nursing homes and specialized beds
• $21.1 million for the direct-to-tenant rental benefit, which will support an additional 2,500 households per year
• $19 million for a school lunch program
• $10 million for supports of children and youth with trauma and exceptional needs
• $4 million to increase teacher recruitment and retention
• $2 million for a dementia strategy and action plan

With files from CTV Atlantic’s Nick Moore

For more New Brunswick news, visit our dedicated provincial page.