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- calendar_today November 13, 2026
Deficit Projection Reduced After Revenue Growth
The New Brunswick government has announced that the province’s projected deficit for this fiscal year has decreased to $1.31 billion. This marks a slight improvement from the $1.39 billion forecast released in March, and is $347 million lower than the first-quarter estimate of almost $1.7 billion.
Primary Drivers: Tax Revenues and Population Growth
A significant increase in revenues—now expected to be $290 million above previous budget estimates—was credited to population growth. Finance Minister René Legacy underscored this trend, noting in a news release, “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.”
According to recent figures, personal income tax revenue is projected to be $63 million higher than anticipated, while corporate income tax is up by $103.4 million compared to earlier forecasts.
Rising Expenses in Social and Health Services
Despite the positive revenue developments, provincial expenses have also increased by $207.9 million. Most of these overruns are linked to higher spending in social supports and health care. The Department of Social Development saw its spending rise by $164.6 million, with increased demand for services such as income security, child welfare and youth services, disability support services, and seniors and long-term care.
Health care expenses have also surpassed projections; the Department of Health is running $78 million over budget, primarily due to higher-than-expected costs in the Horizon and Vitalité health networks.
Population Growth Reaches New Highs
The improvement in New Brunswick’s fiscal outlook is largely attributed to rapid population growth. Since April 1, the province’s population has increased by 4,973 people, representing a 0.6 per cent rate of growth—the highest quarterly rate among all Canadian provinces. Statistics Canada estimates that between July 1, 2025, and July 1, 2026, New Brunswick's population grew by 8,811 people.
Challenges Remain: Forestry Industry and Resource Revenues
Although the overall fiscal picture has improved, challenges persist. Resource revenues have fallen by $12.5 million as the forestry industry continues to struggle amid a trade dispute with the United States.
Context: A Break from Rising Deficits
The latest figures mark a departure from recent trends of increasing deficits under the Holt government. In the 2025–2026 fiscal year, the deficit expanded to $1.3 billion from an earlier budgeted $549 million. While the current improvement is notable, ongoing increases in expenses highlight the complexity of managing the province’s finances as growth continues.
Source: cbc.ca.
