New Brunswick is expected to table its latest budget today. Premier Susan Holt warns that spending cuts are coming to address a massive deficit. The province projects the deficit will hit 1.3 billion dollars by the end of the fiscal year. This number is unprecedented for New Brunswick and more than double the government’s previous projection. You will see exactly how the province plans to manage this financial hurdle when the official numbers drop, according to CBC News.

The 10 Percent Mandate

Holt directed all government departments to reduce their overall spending by 10 percent. No department gets a free pass. The government asked the public for input on where to reduce spending. Some internal suggestions leaked to the public and caused immediate backlash. One proposal suggested closing St. Thomas University and cutting funding to Mount Allison University. Holt quickly backtracked on this idea and promised constituents that the budget will not include post secondary closures.

Tracking the Actual Costs

The budget document serves as a financial guide. It reveals projected spending for the upcoming year and shows what each department actually spent last year. This detail caused trouble for the government in the past. Child and youth advocate Kelly Lamrock previously criticized the province for chronically underfunding child welfare. He argued the government needs to base budget increases on actual spending rather than previous budget estimates. Even if a department receives a budget increase on paper, it lacks the funds to spend more than it did the year before.

Some costs simply refuse to shrink. Health Minister John Dornan recently called increases to health spending unavoidable. Inflation and a new agreement with physicians guarantee that healthcare will demand a larger share of the provincial budget.

Frequently Asked Questions

What is the current estimated deficit for New Brunswick?

The province estimates the current deficit at 1.3 billion dollars.

How much are government departments required to cut?

Premier Susan Holt asked all government departments to reduce their overall spending by 10 percent.

Will any universities close due to these budget cuts?

No. The Premier confirmed that the budget will not result in post secondary closures after facing public backlash over the idea.

Why is health spending expected to increase?

Health Minister John Dornan stated that inflation and a new agreement with physicians make health spending increases unavoidable.