Province recorded larger than expected surplus in last fiscal year
Population growth, economy fuelled $500M surplus for 2023-24, far more than projected
The Higgs government recorded a larger than expected budget surplus last year, according to newly audited financial statements.
The surplus surged to $500.8 million, far higher than the original projection of $40.3 million.
Finance Minister Ernie Steeves used the release of the figures, which happens every September but this year came just days before an election call, to promote the Progressive Conservative campaign.
"The future's bright as long as it's [Premier] Blaine Higgs," he said.
"New Brunswick's becoming a place not to drive through, but a place to drive to, and to stay, and under the leadership of Blaine Higgs I think we'll do well going into the next four years."
As recently as March, Steeves was projecting a $247.4 million surplus — but the final figure is more than double that.
It means another reduction to the province's accumulated debt, which now stands at $11.8 billion.
Deficit still projected for 2024-2025
Each summer, Finance Department officials prepare consolidated financial statements for the province that take in government departments and other entities including N.B. Power, school districts, regional health authorities and non-profit nursing homes.
The statements are then audited by the auditor general, who signs off on the numbers.
The figures released Monday do not affect the $27.6 million deficit that's projected for the current 2024-25 fiscal year.
But they raised questions about a Progressive Conservative election promise to cut the harmonized sales tax by two percentage points, a move that would reduce government revenues by $450 million once fully implemented.
Steeves said the revenue growth fuelled by population growth that boosted last year's surplus is "starting to slow down" but could not explain how — given that trend — he could afford to give up HST revenue without cutting services.
"We plan to afford it. You can always afford things — no, you can't. I shouldn't say that. You can't always afford things. You can afford things in different ways," he said.
"But the fact of the matter is, the financial management we've done over the last six years has given us the leeway to be able to move forward with this."
Province giving up needed revenue: Liberal finance critic
Steeves described the HST promise as coming "from the premier's office" and assured journalists there is a plan to reconcile slowing revenues and a tax cut with the premier's commitment to run balanced budgets.
"We have some ideas with where we'll go with that. I'm not prepared to talk about them right now, but yes, we have ideas. We plan ahead."
Liberal finance critic René Legacy said because the PCs have underestimated tax revenues by a wide margin for four years in a row, they'll probably bring in enough money to make an HST cut affordable.
The problem, he said, is that the Tories would be giving up revenue that they could instead use in areas like health care, housing and infrastructure.
"There's nothing wrong with a surplus, except that when the rest of the province is crying for help, maybe you want to start using some of that for different needs," he said.
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