Finance Minister René Legacy’s budget forecasts a $549-million deficit that swells to nearly $600 million when the tariff contingency fund is added. On Tuesday, March 18 New Brunswick tabled a $14.3-billion budget Tuesday that runs this deficit in part because of the promised increase in health-care funding and a contingency fund to deal with U.S. tariff threats. (The NB Liberals also promised a balanced budget in the fall 2024 provincial election). This breaks with the province’s multi-year streak of balanced budgets under the previous Higgs PC Government. New Brunswick’s projected net debt-to-GDP ratio of 26.6 per cent is still estimated to be the lowest in the country east of Saskatchewan.
This is the first full budget of the government of Liberal Premier Susan Holt, who defeated PC Blaine Higgs in a hard-fought election last October. The Holt Liberals won 31 of the 49 seats in New Brunswick’s legislature. The Progressive Conservatives slid from their majority government position down to 16 seats, however Premier Higgs was not among those elected. The campaign was focused on controversial Conservative education policy issues, growing dissatisfaction with the Higgs government and a PC Party divided over Higgs’ decisions and policies.
US tariff threat
Tariff measures include a support package of $112 million. This includes a new $25-million investment in a program offered through the provincial government agency Opportunities NB and other existing program funds to ensure businesses can be more competitive and to spur productivity, enabling a retooling of the New Brunswick economy. A $50-million contingency is also established to reflect the uncertainty of tariffs and to counter the potential effect they may have on New Brunswickers and the province’s economy.
Premier Holt has been pushing hard on various measures to complement other federal and provincial initiatives in response to U.S. tariffs. This includes buy local programs, and review of provincial government procurement with U.S. companies, with an aim to move away from as many U.S. companies as possible while maintaining frontline services. All American products have also been removed from the shelves of the NB Liquor corporation stores in the province. Most recently, Premier Holt travelled to meet with Maura Healy, Governor of Massachusetts. New Brunswick also supports recent efforts pushed by Premier Houston of Nova Scotia and Premier Ford of Ontario to commit to reducing interprovincial trade barriers. This led to a joint federal-provincial statement on this commitment on March 6. Nova Scotia has gone so far as to table legislation, whereas PEI and NL insist on carve-outs related to select food, fisheries and beverage alcohol systems.
Healthcare
New Brunswick is investing nearly $293 million more than last year in its health-care system.
$30 million will go to community care clinics with the aim of creating at least 30 local family health teams across the province over the next four years.
Technology systems are also receiving significant funding with $28.4 million to transform, modernize and integrate fragmented and outdated health-care technology systems to streamline operations, improve access to patient information, and enhance quality of care (including $19.4 million to fund the ongoing transformation of the clinical information system).
Other health items:
- $15.9 million in physician remuneration, for physicians to maintain their community-based practices.
- $2 million to expand recruitment of qualified health-care professionals nationally and worldwide.
- $1.9 million to increase access to fertility treatments, funding one round of in vitro fertilization treatment per household.
- $462,000 to implement HPV tests as a primary screening test for cervical cancer.
- An additional $150,000 to help break down barriers to midwifery training and certification and support the profession’s growth to address the high demand for services.
Youth + education
Education was a key area in Premier Holt’s fall 2024 campaign platform. As on health, these budget items mostly relate to campaign promises:
- $32.4 million for educational assistants and behavioural intervention mentors.
- An additional $19 million for a school lunch program, using local foods where possible.
- $10 million focused on treatment and support for children and youth with exceptional needs and trauma.
- $8.7 million to support early detection and intervention in cases where the well-being of children or youth may be at risk.
- $200 million over five years as part of a larger program to subsidize more than 17,000 child-care spaces across various programs.
- Additional $16.4 million for more teachers to help address growth in student enrolment.
- $4 million to increase teacher recruitment and retention and address the shortage of teachers.
- $2.1 million supplement for academic support of teachers.
Seniors + housing
- $22 million for nursing homes and specialized beds.
- $10 million for home care affordability.
- $2 million to implement a dementia strategy and action plan.
- $1.5 million to continue implementing the five-year Aging with Dignity action plan as part of a bilateral agreement with the federal government.
- Expanding the respiratory syncytial virus (RSV) immunization program, making free vaccines available to New Brunswickers aged 75 and older.
- $21.1 million for the direct-to-tenant rental benefit, supporting an additional 2,500 households per year.
- Additional $4.6 million for the Affordable Rental Housing Program.
- $3.3 million in public housing repairs & modernization.
- $2.3 million to support the three per cent rent cap.
Links
For more insights on the New Brunswick Budget, connect with Senior Consultant Liam O’Brien.
