Finance minister says government can no longer be “kicking the can down the road” on critical investments
Susan Holt’s Liberal government is projecting budget shortfalls for the next four years.
New Brunswick Finance Minister René Legacy tabled his first provincial budget on Tuesday, March 18, with a deficit of $549 million for this coming fiscal year. He told the legislature the number could climb if the province uses a $50 million emergency fund to help N.B. businesses and employees cope with U.S. tariffs. If that happens, the budget shortfall will be closer to $599 million.
“There are signs that growth is slowing,” said Minister Legacy during his budget speech. “And as we mentioned in our recent update in the third quarter ending in December of last year, we are not seeing the large revenue windfalls that have materialized in past years. When we (discovered) the 2024/2025 fiscal year was projected to end in a higher than expected deficit, it became clear that it would be difficult to table a balanced budget going into the 2025/2026 fiscal year, without causing significant disturbances in our systems and provincially supported programs.”
Legacy’s comment drew low murmuring boos from the opposition.
He noted there are additional challenges related to the financial chaos caused by U.S. President Donald Trump.
Legacy’s projections for the next four years point to deficits, but all are smaller after this year.
Premier Susan Holt campaigned on change, compassion, and balanced budgets – something she promised would happen in all four years of her term.
“For too long, government’s singular focus has been on balanced budgets and debt reduction, which has served to the detriment of the needs of New Brunswickers. Fiscal responsibility can and should be measured in more ways than just the bottom line,” Legacy told reporters.
In his speech, Legacy noted they would no longer be “kicking the can down the road” on critical investments, which he says are needed now.
Healthcare spending increased
In total, the province will spend $4.1 billion on healthcare in the coming year, an increase of $293 million over the year before. The figure includes $30 million to establish collaborative care clinics and at least 30 family healthcare teams, which the Holt government hopes will improve healthcare access for 180,000 people in New Brunswick without a primary care provider. There will also be $28 million for health technology systems and $2 million for recruitment.
Education investments
There is $32 million for educational assistants and behavioural intervention mentors, $16 million for more teachers, and $4 million for education recruitment and retention. Legacy earmarked $19 million for school lunch programs and $200 million for a five-year initiative to subsidize 17,000 childcare spaces. A total of $10 million will be spent to ensure children and youth in crisis who have exceptional needs receive better support.
Money for nursing home beds, homecare, dementia
The province will spend $10 million for homecare affordability measures and $22 million in funding for nursing homes and specialized beds to reduce long wait lists across the province. There will be $2 million for a dementia strategy.
Housing funds announced
The New Brunswick Housing Corporation will get an additional $36 million to address provincial housing challenges, which includes $4.6 million for the Affordable Rental Housing Program and $3.3 million for public housing repairs.
Helping the most vulnerable
Legacy told the legislature that his government would also spend $9 million for transition houses and other housing for those who experience domestic violence. That funding also included community-based services for people who have experienced sexual violence. There is also $4.7 million to improve services and housing for the homeless.
Help for court backlog
Provincial courts will get some help in the way of $5 million for technology that will help transform the court system and clear court backlogs that plague every jurisdiction in New Brunswick.
Minister points to hard choices
“We had to make some tough decisions as we built this budget,” Legacy told the legislature, “but we knew if the choice was between presenting a balanced budget or doing what was right for the people of this province, we would choose New Brunswickers and their priorities every single time. The investments we are making today will save us more money in the long run. If we continue to wait, the issues we are addressing will only get worse and end up costing us even more. We’ve seen the realities of this time and time again – and we’re dealing with those repercussions right now. That is why we are tackling these challenges now and investing in fundamental changes so that our systems will end up costing us less over time. Simply put, we are investing in our future.”
Click here to watch New Brunswick Finance Minister René Legacy’s budget speech.
