The New Brunswick government has announced a surplus of over double the initial projections for the 2023-24 fiscal year, now totalling $500.8 million.
According to a release issued by the provincial government on Monday, the surplus is $253.4 million above projections previously made in the third quarter.
The Canadian Taxpayers Federation celebrated the increase, with Atlantic Director Devin Drover explaining that Premier Blaine Higgs’ government has run four consecutive years of surpluses of over $400 million.
“This is a huge win for taxpayers, as the province is using these funds to pay down the provincial debt, which costs taxpayers over $600 million every year just in interest charges — that’s over $700 per person,” said Drover.
He added that the province’s debt has decreased by 12% from where it stood a decade ago. Net debt fell by over $505 million during the fiscal year, reaching $11.8 billion.
According to the province’s public accounts, New Brunswick has had a surplus since 2017. Before that year, the province had been in a deficit since 2009.
New Brunswick’s Finance and Treasury Board Minister, Ernie Steeves, attributed the drastic surplus increase since the previous projections to increased revenue—primarily due to increased harmonized sales tax, corporate and personal income tax, and sales of goods and services—and stronger population and income growth in the past several years.
“We continue to take a responsible and disciplined approach in managing the province’s finances, along with being prudent with taxpayers’ money while focusing on areas of greatest need, like healthcare, education, and social services,” said Steeves.
While the Canadian Taxpayers Federation commended Higgs, they noted that more can be done.
“[We] hope that all parties in New Brunswick continue to support an approach that prioritizes paying down the debt,” said Drover. “In so, continued surpluses will ensure that tax dollars are used wisely, both to support programs important to New Brunswickers and allowing for further tax relief, such as cutting the HST, which will keep more money in the pockets of hard-working taxpayers.”
The province’s net debt increased every year between 2007 and 2021. In 2007, it sat at around $6.76 billion. By 2021, it decreased from its peak of $13.92 billion down to $13.45 billion.
As of Monday’s update, New Brunswick’s net debt sits around $11.83 billion.
“We saw great improvement in the level of net debt, but we must maintain a steady focus to ensure it is managed responsibly going forward for future generations,” said Steeves.
Other provinces have seen similar changes come to light recently.
For example, Alberta’s surplus rose almost sevenfold by $2.5 billion in its most recent update to the province’s fiscal projections.
Conversely, British Columbia’s deficit rose to almost $9 billion, an increase of $1.1 billion over the initial forecast of $7.9 billion.
The province blamed higher spending for wildfire response and debt servicing costs for the increase.