NB government has decreased capital budget due to fiscal crisis

The New Brunswick provincial government has frozen spending to begin new projects at $24 million for the 2012-2013 capital budget, an $18 million decrease from $42 million in the 2011-2012 capital budget, according to a Communications New Brunswick press release.

Finance Minister Blaine Higgs

New Brunswick's finance minister, Blaine Higgs, says that the decrease in funding for new projects is largely due to the huge fiscal challenges New Brunswick is facing.

"We sought a balance in this capital budget, limiting new spending to address our serious fiscal challenges while investing responsibly in health care and education to help New Brunswickers care for their families," Higgs told Communications New Brunswick. 

The capital budget for the 2012-2013 fiscal year, which was tabled in the provincial legislature on December 13th, contains a plan for spending for the next two years, which means that the government has fulfilled a commitment to unveil a multi-year capital budget plan. 

"This outlook will help with planning and prioritizing our capital needs as our government continues on our three-year plan to return to fiscal balance and to increase transparency and accountability to New Brunswickers," Higgs explained. 

This year's capital budget totals $948 million. More than half of it includes the cost of the Route 1 Gateway project, which was approved in the fall of 2010. Excluding the funding for the Route 1 twinning project, capital spending is estimated to be $404 million. 

Highlights of the capital budget include $404 million for ongoing projects aside from the Route 1 Gateway project, including $24 million to begin new projects. $544 million is being allotted to the Route 1 project. The provincial government plans to spend $438 million and $487 million over the next two years. 

$104 million will be spent on infrastructure in kindergarten to grade eight schools, including $20 million for health and safety improvements. 

$200 million will be spent on other transportation infrastructure, which includes funding for a Caraquet bypass project. 

A number of other strategic investments will be explained in detail upon the release of each department's capital budget estimates.