No giant New Brunswick budget surplus this year, finance minister says
Health spending is running $160 million above target
In a quarterly update of his current-year budget forecasts, Finance Minister Ernie Steeves said a $199.6-million budget surplus he was projecting less than two months ago has mostly evaporated, almost entirely due to unbudgeted spending in the health department.
Citing higher operating and personnel costs in the regional health authorities and additional costs in medicare, the fiscal update revealed health spending is now projected to reach $3.75 billion by the end of March, $162 million over its original allotment.
Speaking to reporters, Steeves said he has no concerns at all about the extra spending in that specific department.
"Absolutely, it is needed," he said
"What can you do? It's health, and it's our top priority right now."
Heavy
spending by New Brunswick's health-care system, including hospitals,
has eaten away at an almost $200-million budget surplus the province was
projecting just weeks ago. (Joe McDonald/CBC)
Steeves was less generous in other areas, however.
He had no announcements to make about new "affordability" measures he has been talking about for several weeks to help people with the cost of living, including large numbers of low income and homeless people that he acknowledged are facing a tough winter.
"As the colder weather comes, certainly it becomes more and more imperative to help those who are disadvantaged. So I can't say it will happen before Christmas or in January but we are looking for new ways to help New Brunswickers," said Steeves.
"Would I like to do more? Yeah I'd like to do a lot more but there are hard choices to be made, and saying yes is not something that happens a lot in this business."
In September, Steeves said he had a package of "affordability measures" he was ready to take to cabinet for approval, which then stalled in October when Premier Higgs said he might need to hang on to them for inclusion in an election platform.
On Wednesday, Steeves said cabinet is still considering what to do.
"We see the need in New Brunswick. That is not lost on us, don't worry about that," he said.
Liberal
finance critic René Legacy says he's worried that promised help to
those struggling with the high cost of living is not coming. (Ed Hunter/CBC)
Bathurst West-Beresford Liberal MLA René Legacy questioned whether any new help is coming.
"We still haven't seen any of those measures announced," said Legacy about Steeves's September claim of an imminent aid package.
"I'm concerned that we're not going to see any of those."
Green Party MLA Kevin Arseneau said he too is worried that commitments Steeves made for assistance are stalled, perhaps permanently.
"They promised to help New Brunswickers with the cost of living and we are still waiting and we're waiting and we're waiting," said Arseneau. "Every time someone asks it's, 'We're talking about it,'" said Arseneau.
A
person pushes a shopping cart filled with items after a homeless tent
camp was dismantled in downtown Moncton in 2019. Opposition MLAs
complain government promises in September to unveil an aid package to
help people with the cost of living has not materialized. (Shane Magee/CBC)
According to the updated forecast, the province is still projecting a budget surplus for the seventh year in a row, but a modest one at $35.3 million.
Over the three previous years Steeves had managed to pile up $2.2 billion in cumulative surpluses, including a record $1 billion last year.
But those were driven by galloping revenue increases and record population growth that Steeves said have been stabilizing.
As a consequence, the province is also budgeting for a $161.8-million increase in its net debt, the first increase in five years.
ABOUT THE AUTHOR
Do ya think a small portion of that will go towards GNB finally refunding my Health Care expenses since 2019?
I just hope we're getting the straight story and the money has/is indeed going into our healthcare system.
But it's also very possible at least some of it is being "set aside" for a few spring budget goodies.
And, a "small surplus" sure beats the ongoing federal spending spree (that is doing nothing to provide financial relief to the many problems they've created).
"Steeves was less generous in other areas, however.
He had no announcements to make about new "affordability" measures he has been talking about for several weeks to help people with the cost of living, including large numbers of low income and homeless people that he acknowledged are facing a tough winter.
"As the colder weather comes, certainly it becomes more and more imperative to help those who are disadvantaged. So I can't say it will happen before Christmas or in January but we are looking for new ways to help New Brunswickers," said Steeves.
"Would I like to do more? Yeah I'd like to do a lot more but there are hard choices to be made, and saying yes is not something that happens a lot in this business."
Federal COVID funding drives up New Brunswick budget surplus to $89M
Finance Minister Ernie Steeves says circumstances are unique, so he's not spending the surplus
Jacques Poitras · CBC News · Posted: Nov 16, 2021 11:52 AM AST
The same applies to the 2022/23 surplus of $882 million.
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