Auditor General Kim MacPherson is highlighting the need to return to balanced budgets and control the growth in net debt in her latest report.
For the year ended March 31st of this year, the province reported its seventh consecutive deficit. With net debt of more than $12 billion, she notes there are no long term targets in place to curtail or reduce net debt.
New Brunswick’s credit rating remains stable but the province’s public-debt-to-GDP ratio is outpacing the “all provinces” average.
The auditor general finds there’s no immediate risk of default on the province’s debt but cautions the province is more vulnerable given its current weak economy, high unemployment and an aging population.
MacPherson is still concerned about the provincial government’s accounting for Shared Risk Pension Plans, claiming the true deficit and net debt remain unknown.
She found the government’s method of accounting for the four Shared Risk Pension Plans did not follow Public Sector Accounting Standards because the risk inherent in the plans is not reflected in the numbers.
The auditor general is recommending the Finance Department change the accounting method for the province’s Shared Risk Pension Plans and restate the province’s March 31st financial statements using correct pension accounting.
