Holt Government Projects $6B in Debt, Continues Deficits Through Mandate
The Susan Holt government in New Brunswick is projecting a $6 billion increase to the province’s debt over the next three years, according to the budget tabled Tuesday at the New Brunswick Legislative Assembly. Despite warnings of “tricky decisions,” the spending plan focuses on long-term solutions rather than immediate cost-cutting measures.
Record Deficit and Debt Increase
The province is facing a record high deficit of $1.37 billion as of the end of this fiscal year. The budget outlines plans for continued deficits throughout the remainder of Holt’s mandate. The net debt is expected to rise from $13.9 billion currently to $19.7 billion by the end of the 2029 fiscal year, increasing the net debt to GDP ratio by nearly eight percent.
Economist Richard Saillant expressed concerns about the fiscal responsibility of the budget, calling it “highly irresponsible” and a “complete dereliction of duty,” suggesting the current trajectory is unsustainable. CBC News
Spending Priorities and Cuts
The government has prioritized healthcare, with a 17.4% increase in the health budget. However, when compared to actual healthcare spending from the previous year, the increase is 6.1%. The Department of Social Development will likewise see a significant increase of 15.5%, translating to a 7.6% boost compared to last year’s actual spending. Global News
Although healthcare and social development budgets are increasing, other areas face cuts. General government spending will be reduced by 11%. Smaller cuts are planned for the Department of Natural Resources (4.3%) and the Regional Development Corporation (1.2%).
Cost-Saving Measures
The government plans to reduce the size of the civil service by 12% through attrition, aiming to save $100 million over three years. A toll will be introduced on non-New Brunswick vehicles near Aulac, projected to generate $10.4 million annually starting in 2028. Provincially-owned heritage sites with fewer than 5,000 annual visitors will be closed or transferred, and provincial field veterinary services will be phased out over three years. CBC News
The budget also includes plans to reduce reliance on outside contracts through stricter approval processes and review “underutilized” assets, including schools with fewer than 100 students.
Budget Deficits Over Mandate
The Liberals are forecasting the following deficits:
- $1.394 billion in 2026/2027
- $1.305 billion in 2027-2028
- $1.267 billion in 2028/2029
This represents a total projected deficit of over $5 billion over the four-year mandate. Telegraph-Journal