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New Brunswick Budget Sets Multi-Year Deficits, Adds $6 Billion to Debt

The plan prioritizes a major health-care funding boost over immediate, across-the-board cuts.

Overview

  • Net debt is projected to rise from $13.9 billion to $19.7 billion by 2029, increasing the net‑debt‑to‑GDP ratio by nearly eight percentage points.
  • The province closed the fiscal year with a record $1.39‑billion deficit and now forecasts shortfalls of $1.3 billion in 2027–28 and $1.26 billion the following year.
  • Health care receives the budget’s centerpiece increase, up 17.4% from last year’s budgeted amount and 6.1% over last year’s actual spending, billed as the largest investment to date.
  • Targeted measures include a 12% civil‑service reduction through attrition (up to $100 million in savings), a 2028 toll on non‑New Brunswick vehicles near Aulac estimated at $10.4 million annually, transfers or closures of low‑traffic heritage sites, and a three‑year phase‑out of field veterinary services.
  • Officials say discussions on broader cost‑cutting continue, while economist Richard Saillant warns the fiscal path could pressure the province’s credit rating.