Falling revenues affect government's deficit projection01 November 2012
FREDERICTON (GNB) – The provincial government released its second quarter report today which projects the deficit to be $173 million larger than originally forecast mainly due to lower provincial revenues.
“Lower than projected revenues have had a significant impact on our original budget forecast of a $183 million deficit,” said Finance Minister Blaine Higgs. “While these decreased revenues may not have been foreseeable, they cause shortfalls which need to be addressed by focusing on reducing spending and living within our means.”
Lower than expected income tax, harmonized sales tax and corporate tax revenues account for about $110 million in decreased revenue, reflecting a weakened economy. In total, revenue is $123 million below budget.
Overall expense projections have increased by $51 million, which is less than one per cent of the government’s overall budget.
“Rebuilding our province's finances remains a key priority of our government,” said Higgs, “We must all work together to meet our budget objectives. In the second quarter report last year, we were projecting a deficit of $546 million. However, through the hard work of the civil service and the continuous improvement focus, we were able to come in $188 million under budget by year end.”
● Department of Finance