The New Brunswick government projects a historic $1.39 billion deficit in its 2026 provincial budget. Finance Minister Rene Legacy tabled the $15.63 billion budget on Tuesday. The province attributes the record shortfall to unprecedented investments in the health care sector.

New Brunswick Finance and Treasury Board Minister Rene Legacy speaks at a press conference prior to delivering the provincial budget in the Legislature in Fredericton on Tuesday, March 17, 2026. Image source: THE CANADIAN PRESS by Stephen MacGillivray via CTV News

Record Investments in Health Care

Health care serves as the centerpiece of this year’s financial plan. The government will increase health spending by $710 million. This represents a 17.4 percent jump from last year and brings the total health budget to $4.8 billion.

“This is a budget that reflects the voices of New Brunswickers,” Legacy told reporters. “It is a budget that makes generational investments in health care and lays the foundation for a sustainable and prosperous future for all.”

The province will spend $170.4 million on a new compensation model for doctors. This model rewards physicians for taking on new patients and participating in collaborative care clinics. The government also allocated $30 million to expand the collaborative care clinic model and $50 million to modernize the clinical information system. Paramedics will receive $2.5 million to carry clot busting medications to treat heart attacks and strokes in the field.

Affordability and Housing Measures

The budget includes several measures to help you manage the rising cost of living in Saint John and across the province. The government will spend $17 million on a community housing retention and expansion project. Another $10.2 million will fund wraparound services for supportive housing.

The province will maintain the residential electricity rebate at a cost of $98.1 million. Social assistance rates will also increase to match inflation through a $4.4 million investment.

“New Brunswickers told us what they needed, and this budget delivers,” Legacy said in a government press release. “We are making the largest investment in health care our province has ever seen while helping families manage the cost of living and making the responsible decisions needed to sustain these investments for the future.”

Job Cuts and New Highway Tolls

To offset these investments, the government plans to cut costs and generate new revenue. The province will shrink the civil service by 12 percent over the next three years. Officials expect to achieve this through attrition and project $100 million in savings.

The government will also phase out provincially run field veterinary services over three years. Private providers will take over animal medical care. The province will review underutilized assets and close or transfer heritage properties that see fewer than 5,000 annual visitors. Schools with fewer than 100 students also face review.

You will see a new toll booth on the Trans Canada Highway near the Nova Scotia border in Aulac by 2028. The government will charge out of province vehicles and expects to generate $10.4 million annually for road and bridge maintenance.

Frequently Asked Questions

What is the total deficit for the New Brunswick 2026 budget?

The provincial government projects a historic deficit of $1.39 billion for the 2026 fiscal year.

How much is the government investing in health care?

The province is increasing health care spending by $710 million. This brings the total health care budget to $4.8 billion.

Will there be job cuts in the government?

Yes. The government plans to reduce the civil service by 12 percent over three years through attrition.

Are there new highway tolls in New Brunswick?

The government will introduce a toll for out of province vehicles on the Trans Canada Highway near Aulac by 2028.

What is the government doing about the cost of living?

The budget includes $17 million for community housing and maintains the $98.1 million residential electricity rebate.