Health spending helped push New Brunswick deficit to record $1.3B in last fiscal year

The New Brunswick government says its finances improved slightly at the end of the most recent fiscal year, but the province still posted a record $1.3-billion deficit.

The shortfall is more than double the $549-million deficit the Liberal government had projected in its March 2025 budget.

Provincial revenues were almost $217 million less than expected, due to lower harmonized sales taxes along with less corporate and personal income taxes.

Meanwhile, expenses were almost $538 million more than expected, largely because of extra spending on health-care and social development.

New Brunswick closed the fiscal year with a net debt of $13.9 billion.

Finance Minister René Legacy says the government is committed to making the changes New Brunswickers expect despite pressure from U.S. trade policy.

“As costs and tariff pressures rise, we are looking at where (the) government can work more efficiently and (create) new opportunities to grow our economy and bring in new revenue,” the minister said in a statement.

“We will continue to focus on what matters most to New Brunswickers while keeping a close eye on the bottom line.”