New Brunswick projects $300 million deficit in 2020-21

New Brunswick

The New Brunswick government is projecting a nearly $300 million deficit for 2020-21 due to the impact of the COVID-19 pandemic.

Revised projections for the fiscal year, released on Thursday, change the budgeted surplus of $92.4 million to a deficit of $299.2 million.

Government says that revenue is projected to be $291.4 million lower than budgeted, largely due to lower projections for provincial taxes, agency revenues, licences and permits, and interest revenue.

Expenses are projected to be over budget by $100.2 million, of which $39.5 million is offset by federal revenue, mainly due to increased expenditures in response to the pandemic.

Finance and Treasury Board Minister Ernie Steeves says, "The impacts of the pandemic are only beginning to be understood, and it will take more time to fully comprehend the effects on our economy and our finances."