News Release

FREDERICTION (CNB) - Audited financial statements released today show that New Brunswick recorded a slightly smaller deficit than expected for 2009-10. Finance Minister Greg Byrne cautioned, however, that balancing the books remains a big challenge that must be addressed.

At $737.9 million, the deficit for the fiscal year ending March 31, 2010, was $4.9 million less than the March update and $3 million less than the original budgeted deficit of $740.9 million.

"We are very pleased that the deficit came in lower than expected in our original budget, but having said that, we realize we have a great deal of work to do to bring the province back to balanced budgets," said Byrne. "It is unfortunate that we are carrying such a large deficit, but given the fact we are working to help our province and our economy recover from the economic downturn, it is, frankly, unavoidable.”

The global economic downturn that started in the fall of 2008 played a key role in affecting budgets not only for New Brunswick, but globally, in recent years.

Byrne added that, despite financial challenges, New Brunswick has maintained the best overall credit rating of all provinces east of Ontario.

"Holding spending in check is critical to achieving balanced budgets, but we will not balance the budget by curbing spending alone," said Byrne. "We need to grow revenue by growing the economy. We believe we can create jobs and grow our economy to make our province self-sustainable and self-sufficient."

The audited figures for 2009-10 showed that revenues were $107.4 million lower than budget on total revenues of $7 billion. Total spending came in $110.4 million lower than budget at $7.7 billion.

Revenues were lower than budgeted primarily due to a write-down of the Dalhousie generating station as a result of NB Power's decision to decommission the plant.

Expenses, meanwhile, were lower than budgeted largely as a result of pension expenses that improved by $173.2 million, mainly due to higher-than-budgeted investment returns in 2009-10. Lower expenses were partly offset by higher-than-budgeted costs in delivering health and senior-care programs as well as an increased provision for losses.

The statements also show the province's net debt is now at $8.4 billion. Contributing factors include the economic slowdown and its repercussions; the write-down of Dalhousie generating station; increased pressures on social programs; the provincial government's strategy to provide economic stimulus during the economic downturn; and tax relief.

The auditor general has given a clean audit opinion on the 2009-10 financial statements.

"The audited results are normally released in September, but given the upcoming election, we felt it necessary and appropriate to release them as early as possible so that New Brunswickers are fully aware of the challenges ahead," Byrne said.

The complete audited financial statements for 2009-10 are online.

LINK:

●    Office of the Comptroller

EDITOR'S NOTE: Finance Minister Greg Byrne will hold a news conference at 11 a.m. TODAY, Friday, Aug. 13, in Room 112, Centennial Building, 670 King St., Fredericton.