N.B. projects highest deficit in two decades at $834.7 million

The New Brunswick government is projecting the highest deficit in two decades for the 2025-26 fiscal year.

The New Brunswick government is projecting a deficit of $834.7 million for the 2025-26 fiscal year – the province’s largest financial shortfall in two decades.

Finance Minister René Legacy released second-quarter financial results on Friday.

The province’s projected revenue is now $180.5 million lower than budgeted, with expenses projected to be $105.2 million higher.

Landry said revenue is lower than budgeted due to a reduction in corporate income tax revenue, personal income tax revenue and lower federal conditional grant revenues.

Total expenses exceed what was initially projected because of higher costs in health care and social development, said Landry.

In its financial update in August, the province said its spending deficit for the current fiscal year was predicted to be $668.7 million – compared to $549 million which was projected in the March budget.

The provincial net debt is now projected to be $13.5 billion, up from $12.3 billion last year.

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