A recently released report states a nightmare come true for the David Alward government.
The New Brunswick government recently released its second quarter report. The report states that the province's deficit is now projected to hit $545.7 million.
The new deficit projection is an increase of $31.4 million from the original forecast, and $96.9 million from budget. Revenues are expected to be $37 million lower than originally budgeted, which is linked to the deteriorating economic situation and projected drops in personal income tax revenue, and lower revenues from NB Liquor and the Lotteries and Gaming Corporation. However, there were increases in the metallic minerals tax, licenses and permits, and corporate income tax revenue.
The government's total expenses are $59.9 million more than budgeted--a small decrease from the first quarter. The decrease is largely attributed to lower expenses in the Department of Health, Service of the Public Debt, and the government's Special Operating Agency account.
There were higher expenses in legislated pension plans and employee benefits, and the Department of Agriculture, Aquaculture and Fisheries.
Finance Minister Blaine Higgs told Communications New Brunswick that "we have introduced a departmental budget scorecard to ensure departments are accountable for their budgets and keep the public and government informed about their spending."
The scorecard is based on the quarterly estimate. Despite the government ordering a two percent cutback in the budgets of every department, there are departments that are still over $500,000 over budget. They will be indicated on the scorecard in red and with an exclamation point, while departments that are on budget will be marked with a green check.
Action is being taken by the government to trim costs. The Department of Transportation announced today that 21 snowplow vehicles will be taken out of service, and strict restrictions will be implemented on the use of salt on New Brunswick's roads as part of the DoT's efforts to save $4 million. The government is also considering tolls on New Brunswick highways and tax increases.
The deficit is not the only area where New Brunswick's fiscal state is continuing to deteriorate. The net debt is expected to climb by $700.3 million annually. Minister Higgs expects that "by the end of this year, New Brunswick will be over $10 billion in debt. This is unacceptable and unsustainable."
 |
| Finance Minister Blaine Higgs |
The new deficit projection is an increase of $31.4 million from the original forecast, and $96.9 million from budget. Revenues are expected to be $37 million lower than originally budgeted, which is linked to the deteriorating economic situation and projected drops in personal income tax revenue, and lower revenues from NB Liquor and the Lotteries and Gaming Corporation. However, there were increases in the metallic minerals tax, licenses and permits, and corporate income tax revenue.
The government's total expenses are $59.9 million more than budgeted--a small decrease from the first quarter. The decrease is largely attributed to lower expenses in the Department of Health, Service of the Public Debt, and the government's Special Operating Agency account.
There were higher expenses in legislated pension plans and employee benefits, and the Department of Agriculture, Aquaculture and Fisheries.
Finance Minister Blaine Higgs told Communications New Brunswick that "we have introduced a departmental budget scorecard to ensure departments are accountable for their budgets and keep the public and government informed about their spending."
The scorecard is based on the quarterly estimate. Despite the government ordering a two percent cutback in the budgets of every department, there are departments that are still over $500,000 over budget. They will be indicated on the scorecard in red and with an exclamation point, while departments that are on budget will be marked with a green check.
Action is being taken by the government to trim costs. The Department of Transportation announced today that 21 snowplow vehicles will be taken out of service, and strict restrictions will be implemented on the use of salt on New Brunswick's roads as part of the DoT's efforts to save $4 million. The government is also considering tolls on New Brunswick highways and tax increases.
The deficit is not the only area where New Brunswick's fiscal state is continuing to deteriorate. The net debt is expected to climb by $700.3 million annually. Minister Higgs expects that "by the end of this year, New Brunswick will be over $10 billion in debt. This is unacceptable and unsustainable."
No comments:
Post a Comment