Finance Minister Ernie Steeves speaks at a provincial press conference (Photo: Government of New Brunswick/Submitted)
The original projection of a surplus in the 2020-2021 budget by the provincial government has drastically changed due to COVID-19.
The projection was a surplus of $92.4 million and is now forecast to be a deficit of $299.2 million.
Ernie Steeves, Finance and Treasury Board Minister said they are facing a situation unlike anything they have ever experienced before.
“The impacts of the pandemic are only beginning to be understood, and it will take more time to fully comprehend the effects on our economy and our finances,” he said.
The 2020 to 2021 budget includes a $291.4 million decrease in revenue and expenses are projected to be over budget by $100.2 million.
$39.5 million of the projected debt is offset by federal revenue.
The net debt is projected to reach $14.1 billion, which is an increase of $266.7 million over the 2019-20 level.
Real GDP growth will be -4.3 per cent for the year and the average real GDP forecast among private sector forecasters is -5.5 per cent.
“This crisis underscores the importance of building fiscal flexibility and being disciplined during stable economic times,” said Steeves.
“We are committed to providing support to New Brunswickers during this crisis while remaining strong fiscal managers to secure a brighter future.”
