Positive second-quarter results driven by high own-source revenue and federal transfers16 November 2021
FREDERICTON (GNB) – The provincial government’s second-quarter results for the 2021-22 fiscal year show a $89.1 million surplus compared to the budgeted deficit of $244.8 million.
“We are seeing taxation revenue increases reflecting stronger-than-anticipated 2020 results and a stronger economy, as well as increases in federal transfers,” said Finance and Treasury Board Minister Ernie Steeves. “This is happening across the country. Together, these improvements are driving higher than expected revenues.”
Revenue is projected to be $487.2 million higher than budgeted.
Total expenses are projected to be higher than budget by $153.3 million, mainly due to expenses associated with General Government and Health, partially offset by lower expenses in Post-Secondary Education, Training, and Labour, Special Operating Agencies, the Regional Development Corporation, and Social Development.
The Department of Finance and Treasury Board projects real GDP growth in New Brunswick of 3.7 per cent for 2021. The average of private sector forecasts is now 4.0 per cent. The second-quarter results are available online.
“While this is encouraging, we must keep in mind that some of the cost savings that led to the surplus, such as delayed surgeries, are costs we will have to face in the future. At the same time, there still remains a high degree of uncertainty ahead. For these reasons, we must continue to manage our finances responsibly,” said Steeves.
Affordable and responsive government is one of the government’s key priorities.