Auditor General Gives Mixed Views Of N.B. Finances

New Brunswick’s auditor general says a $37-million reduction in net debt last year was a positive for the province.

In her latest report, Kim Adair-MacPherson said it is the first time the province recorded a decrease in its net debt since 2007.

New Brunswick also recorded its third consecutive surplus in 2020 of $49 million following several years of large deficits.

“Despite the small reduction in net debt in 2020, New Brunswick’s ability to reduce its net debt in the future is challenging because of the aging population, the unemployment rate is higher than the national average, and slow economic growth,” said Adair-MacPherson.

The province’s net debt figure now stands at $13.9 billion. Ten years ago, the province had a net debt of $9.6 billion.

Meanwhile, the auditor general said the province’s net debt-to-GDP ratio is trending in a favourable direction.

The ratio stood at 36.6 as of 2020, down from 40.9 four years earlier. But Adair-MacPherson said it still remains higher than the first half of the decade.

“Another important thing to note is that New Brunswick’s net debt-to-GDP ratio is higher than most other provinces with similar populations,” she said, pointing to Manitoba and Saskatchewan as examples.

Adair-MacPherson said she is pleased that the province set multi-year net debt and net debt-to-GDP radio targets, something her office had been calling for.

But she notes the targets have not been updated to include any impacts related to COVID-19.