The government of New Brunswick is releasing a second quarter fiscal and economic update for 2026 to 2027. It projects a deficit of $1.31 billion, a $347-million improvement over the first quarter’s forecast. The province cites increased revenue as a key factor, and total revenue is anticipated to be $290 million higher than budgeted. Those results are largely driven by a growth in personal and corporate income tax revenue related to population growth, the province says. “We are starting to see positive trends in our economy, like steady GDP growth and stronger fiscal indicators, which shows that our approach is working to build a stronger future,” Finance and Treasury Board Minister René Legacy says in a news release. Though, he notes rising costs and economic uncertainty are still significant challenges for many New Brunswickers. He also said the province has identified $95 million in potential savings. “It’s far from enough,” he said. “That’s why the work continues in every department. The work is far from done and $95 million is not enough.” Progressive Conservative Leader Daniel Allain said the government’s announcement does not represent a turnaround. “This is not a tax windfall,” he said. “Government did not tighten their belts; families had to.” Total expenses are projected to exceed the budget by $207.9 million, largely driven by higher spending in social development. The province says the spending is to support the needs of vulnerable populations and higher-than-budgeted operational costs in health. “The past two years haven’t been easy, with global uncertainty, rising costs and new pressures here at home,” says Legacy. “But, through it all, we’ve stayed focused on what matters most: supporting people and making smart investments in the services and programs New Brunswickers count on.” With files from CTV News Atlantic’s Anna Mandin For more New Brunswick news, visit our dedicated provincial page.
