The province of New Brunswick now expects an $834.7 million deficit. The budget forecast had projected $549 million.
Finance and Treasury Board Minister René Legacy said the number reflects rising pressures across the province. He noted that the government continues to invest in services that residents need, even during a challenging fiscal period.
Revenue Drops Across Key Categories
The update shows total revenue falling $180.5 million below budget expectations. Lower corporate income tax, reduced personal income tax, and weaker federal conditional grants drive this decline.
Legacy said many families and businesses face strain, and revenue trends mirror that reality.
Spending Rises in Health and Social Development
Expenses are set to exceed the budget by $105.2 million. Higher health-care demand and rising social-development costs account for most of the increase.
Legacy said the government will continue to direct funds to essential programs that support New Brunswickers.
Debt Levels Remain Among Canada’s Best
Despite the wider deficit, New Brunswick maintains strong debt indicators. The province’s net-debt-to-GDP ratio remains the fourth best in Canada.
Net debt per capita also ranks among the lowest, trailing only Alberta and Saskatchewan. Legacy said these numbers show that the province still holds a solid fiscal foundation.
See full report: Fiscal and Economic Update
Government Signals Hard Choices Ahead
Legacy warned that the rest of the fiscal year will require firm decisions. He said the 2026-27 budget will also bring difficult choices.
However, he stressed that the government will honour its commitments to residents. He added that officials are reviewing options to use fiscal capacity wisely while keeping support strong and sustainable.
Economic Growth Forecast Remains Modest
The department projects 0.9% real GDP growth for 2025. Private-sector forecasts average 1.1%, placing the province slightly below national expectations.
Legacy said economic momentum remains steady, though several sectors face ongoing challenges.
