Provincial debt is costing Maritime residents hundreds of dollars in taxes every year, according to a new Fraser Institute report. “In the three Maritime provinces, we illustrate that under a zero-debt scenario, taxpayers could benefit from $1,600 to $1,800 per year in tax relief,” said Alex Whalen, the Fraser Institute’s Atlantic Canada Prosperity director. The right-leaning think-tank also estimated that by the 2028-2029 fiscal year, Prince Edward Island’s net debt will be $4.8 billion, New Brunswick’s will be $18.5 billion and Nova Scotia’s will be $32 billion. “Taxes are the number one expense for the average Canadian family,” he said. “I think when governments are talking about and considering policies related to the cost of living, they need to look at their own finances and need to look at the way that taxes burden the average family.” The report comes amidst record high projected deficits in all three Maritime provinces. According to a pre-budget consultation survey released by the New Brunswick government in February, a majority of residents polled said provincial debt was a concern to them. David Chaundy, president and CEO of the Atlantic Economic Council, is warning of a “fiscal crisis” if provinces continue outspending revenues at the same rate. “That is not a trajectory we can just continue forever. At some point borrowers will start to get concerned,” Chaundy said. On Tuesday, the P.E.I government tabled its operational budget, outlining a five-year spending reduction for infrastructure and capital projects. Finance Minister Jill Burridge told the province’s legislative assembly fiscal responsibility and growing infrastructure needs were top of mind in planning. “This is a reasonable and practical budget,” Burridge said. “It is balanced and measured. It focuses on foundational investments.”
