Finance Minister Ernie Steeves (File Image: Zoom video capture)
The province of New Brunswick is reporting the biggest budget surplus in its history at $777.3 million – almost $290 million higher than projected in the third-quarter fiscal update.
For the 2021-22 fiscal year ending March 31, 2022, a growing population and a strong economic recovery from the pandemic were major factors in the surplus.
Finance minister Ernie Steeves says despite positive results, challenges remain.
“Labour supply shortages, high inflation rising interest rates are all driving up the costs of living here in New Brunswick and around the world. For these reasons, we will continue to be responsible with our finances.”
But Steeves acknowledges the province needs to help New Brunswickers who are struggling with the high cost of living.
He notes how the surplus has already been accounted for and new spending will have to come from this year’s fiscal budget.
Steeves says the province intends to build on this momentum.
“(We’ll be) focusing on strategic investments to address inflation, housing pressures, reducing taxes and to address internet service for all of New Brunswick.”
Total consolidated revenues for the fiscal year were $11.4 billion.
Taxes including personal income tax, the Harmonized Sales Tax, and corporate income tax account for the majority of the revenue variance from budget, reflecting the stronger economy.
As compared to third-quarter projected results, revenue increased by $178 million, with about half of the variance attributed to an adjustment reflecting personal protective equipment and rapid tests received from the federal government.
Total consolidated expenses were $10.6 billion, $12 million lower than the budget estimate.
Expenses grew 7.1 per cent over the previous year reflecting additional investments in health and education, as well as higher expenses for the settlement of collective agreements and spending to protect residents from COVID-19.
At year end, net debt was $12.4 billion and the net debt to GDP ratio for 2021-22 decreased to 29.9 per cent from 35.8 per cent.
The auditor general provided an unmodified opinion on the province’s consolidated financial statements for the fiscal year.
