FREDERICTON (GNB) – The provincial government has released its third-quarter fiscal update for 2014-15 showing projected reduction to the deficit due to one-time revenue.
The government is now projecting a deficit of $255.4 million for 2014-15, an adjustment of $135.7 million, compared to the budgeted deficit of $391.1 million.
“This is welcome news, however, the province is still in a serious deficit position,” said Finance Minister Roger Melanson. “More work and more difficult decisions are needed to right our fiscal ship and move New Brunswick forward.”
Melanson said the adjustment is mainly due to one-time payments in tax revenue, federal funding recoveries and higher net income for NB Power.
A second-quarter fiscal update in November 2014 also showed a slight improvement in the deficit.
Expenses continue to be over budget in a number of departments, resulting in a projection of total expenses $82.5 million higher than budgeted.
The projected increase in net debt is $377.1 million.
A strategic program review is currently underway to identify potential savings and opportunities for increased revenue across government.
“We are taking this initiative seriously,” said Melanson. “We need to get to a point where we can provide programs and services in an equitable and sustainable manner, and we cannot do that if we are constantly in a deficit position. We need a balanced approach to reducing the cost of government, increasing revenues, and encouraging private-sector investment.”
13-02-15