FREDERICTON (CNB) – The provincial government released its third quarter report today which shows the province’s deficit picture has improved from last quarter. The province is projecting a deficit of $471.1 million, which is $74.6 million less than the projection last quarter.

“As a result of reduced spending across government, our expenses are projected to be $14.2 million lower than budget, which has helped us to stay on track despite softening revenues and a weakened economy over the last three quarters,” said Finance Minister Blaine Higgs.

In the 2011-12 provincial budget, the government projected a deficit of $448.8 million.

Total expenses were $74.1 million less than last quarter and $14.2 million lower than budgeted. This is mainly due to lower spending in a number of departments, including Business New Brunswick; Post-Secondary Education, Training and Labour; the Regional Development Corporation; and Social Development. Expense projections have also decreased at third quarter for Service of the Public Debt and General Government.

Revenues are projected to be $36.5 million lower than budgeted. This is due to the weakened economy and projected decreases in both personal and corporate income tax revenue; decreased revenues from the NB Liquor and from the Lotteries and Gaming Commission.

“We have seen spending reduced in almost every department over the previous quarter,” said Higgs. “We still have a lot of work to do to address the deficit and our mounting debt, however this is a positive sign that departments are recognizing the significant fiscal challenges we face and are contributing to the solution.”


08-02-12