Third-quarter results reflect continued strength in provincial economy: minister15 February 2023
FREDERICTON (GNB) – Third-quarter financial results released today demonstrate continued strength in the provincial economy and are in line with improvements in revenue and fiscal projections across the country, according to Finance and Treasury Board Minister Ernie Steeves.
“Today’s results are largely consistent with what was presented at the time of the second-quarter fiscal and economic update, and reflect continued strength in the provincial economy,” said Steeves. “Further, we are able to make progress in assuring the long-term financial health of our province while also addressing immediate needs of New Brunswickers.”
The government recently announced several measures to support New Brunswickers, including:
- An additional $2 million for the Food Depot Alimentaire in Moncton to help with purchasing healthy food for distribution to food banks and soup kitchens across the province.
- New provincially owned public housing for the first time in 38 years.
- A second round of payments through the Emergency Fuel and Food Benefit to help eligible recipients address the rising cost of living.
- An increase in the minimum wage.
- Increased funding for improvements in the health-care sector, including the reduction of surgical backlogs, expansion of NB Health Link, and strategic investment in recruitment and training.
- Reductions to provincial personal income taxes, benefitting more than 400,000 taxpayers. This includes reducing the tax rate for all income brackets, increasing the basic personal amount and enhancing the low-income tax reduction.
- The Enhanced Energy Savings Program, which has been expanded to help homeowners transition away from heating with oil furnaces.
- A decrease in out-of-pocket costs by up to 50 per cent for parents of children aged five and under in a designated child-care facility.
The government’s third-quarter results for the 2022-23 fiscal year show a $862.6 million surplus.
Revenue is projected to be just over $1 billion higher than budgeted. Steeves said the improvement reflects stronger-than-anticipated economic, population and income growth, positively impacting corporate income tax, personal income tax and harmonized sales tax.
Total expenses are projected to be $240.2 million higher than budgeted, mainly due to additional expenses in Health, Post-Secondary Education, Training and Labour, Natural Resources and Energy Development, and Social Development.
“We will continue our commitment to maintain strong, prudent fiscal management by considering the long-term financial health of the province in every decision that is made, not only for today, but for future generations,” said Steeves.
The department projects real GDP growth of 2.2 per cent in 2022. The average of private sector forecasters is 2.0 per cent. The third-quarter results are available online.