New Brunswick is reporting a multi-million dollar surplus for the second quarter of the 2023-2024 fiscal year, although the number falls a bit short of its budgeted surplus.
According to a Tuesday news release, projections show a $35.3 million surplus compared to a budgeted surplus of $40.3 million. Total revenue is projected to be $156.2 million higher than budget.
“As we noted during our 2023-24 first-quarter release, we are not seeing the same signs of unprecedented revenue growth like we have over the past year,” said Finance and Treasury Board Minister Ernie Steeves in the release.
Dalhousie economist James McNeil is taking note of the lower-than-expected surplus.
"It tells us just that there is a lot of uncertainty in the economy, both on the revenue side and on the expenditure side,” he said. “There's a lot of uncertainty in general in the economy and that was reflected in that the projections were quite a bit different that what we're seeing in reality."
The release notes the net debt is projected around $12.6 billion and total expenses are expected to be over budget by $161.2 million. The department also expects real GDP growth of 1.1 per cent for 2023.
The government opposition says they want to know where the money is going.
"What I'm not seeing is a lot of new initiatives, what it seems the minister is saying is it cost a lot more for what they had planned to do with this budget,” said Rene Legacy, N.B. Liberal MLA.
"No one knows where this government is going it seems like when the premier wakes up one morning and decides to put money on something, everything seems to be decided on a whim,” said Kevin Arsenau, N.B. Green MLA.
Other highlights of the second quarter include:
- Personal income tax revenue up $51 million;
- The Department of Health is projected to be $162 million over budget due to higher personnel and operating costs;
- Harmonized sales tax revenue is up $77.7 million;
- The Department of Post-Secondary Education, Training, and Labour is estimated to be over budget by $53 million due to increased demands and federal funding for the WorkingNB program;
- Natural Resources and Energy Development is projected to be $21.2 million over budget
