Bigger cuts will be needed to help balance the upcoming provincial budget, according to New Brunswick’s premier.
This comes as the province faces growing economic uncertainty over the ongoing threat of tariffs by the U.S. president.
“We’re really having to look much more aggressively at the size and the scope of the kind of cuts that we’ll need to make to the cost of doing government in order to achieve a balanced budget,” Premier Susan Holt told reporters on Tuesday.
“That’s across procurement, it’s across all of the operations of government as we strive to get as close to balance as possible in the face of significantly declining revenues and a major shift in both the economic forecast and the cost profile of doing business.”
Holt made the comments as she announced her government would stop signing new contracts with U.S. companies for the time being and look to replace companies currently being used.
The premier said one of the main reasons why the New Brunswick government usually ends up purchasing from the United States is because they are more cost competitive.
“Oftentimes, moving to another supplier in another market comes with an increased cost. So that’s something we have to evaluate as we look at our opportunities to replace U.S. contracts with Canadian or European or alternate ones and see whether there’s cancellation costs, whether there’s significant price differences,” Holt added.
As for how extensive any budget cuts would be, Holt said her government is currently putting together the 2025-26 budget.
“We’re looking at all the different forecasts that we could leverage. We’re looking at all the different things that we might be able to reduce or stop doing. But it’s going to be significant,” she said.
The Liberal government is expected to table its first budget on March 18. Residents are invited to submit their feedback until Feb. 28.
