N.B. ends 2024-25 fiscal with $104M deficit, despite $156M tobacco settlement

The N.B. government released its financial statements from the 2024-25 fiscal year.

The New Brunswick government has released its financial statements from the 2024-25 fiscal year, which concluded with a $104.4 million deficit – rather than a projected $40.9 million surplus.

It also drove up the net debt from $11.8 billion to almost $12.3 billion.

That’s about $14,400 per New Brunswicker, up about $200.

The court case agreement with tobacco companies saw revenues increase by $156 million, but overall expenses were $416.9 more than the budget.

The tobacco settlement went into general revenues.

“We’re being reimbursed for the healthcare system’s burden through tobacco,” said Finance Minister René Legacy.

Legacy says at this point, it’s unclear how much more N.B. will receive from the tobacco settlements. He did say through researching the impact, the province is owed about $596 million under the lifetime of the agreement.

Actual spending on healthcare was $337 million more than originally budgeted. The province cites higher regional health authority operating and personnel costs as one of reasons for going over budget, as well as some demand for patients having to seek-out-of province health services.

The Department of Finance staff also said HST revenues were lower than projected, in part because of the federal government’s so-called HST holiday from winter 2025.

Those losses range between $62 and $70 million.

Legacy said discussions with Ottawa regarding compensation for HST loss are ongoing.

In a fiscal update in August, the province said its spending deficit for the 2025-26 fiscal year was projected at $668.7 million – compared to $549 million which was projected in March.

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