Key Takeaways:
- The Higgs government will begin charting the province’s post-COVID fiscal course with the introduction of a new provincial budget on Tuesday.
- This year, Steeves forecasted a $244 million deficit, but massive federal pandemic spending and a strong economy resulted in a $487.8 million surplus.
With the introduction of a new provincial budget on Tuesday, the Higgs government will begin charting the province’s post-COVID fiscal course.
And, after two years of spending plans being thrown off by the pandemic, it appears that budget “stability” could mean more money for critical services.
“Last year, I said our budget was one where I didn’t want to deliver, but that New Brunswick needed,” Finance Minister Steeves said at a news conference on Monday, referring to the province’s deficit projections from the previous year.
“This year, I have a budget that I want to deliver, a budget that New Brunswick requires, and a budget that I believe New Brunswick desires.”
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Steeves projected a $244 million deficit this year, but massive federal pandemic spending and a booming economy turned into a $487.8 million surplus.
Premier Blaine Higgs stated two weeks ago that the last two years’ roller coaster budgeting would give way to more stable as well as predictable fiscal planning.
This year’s budget, he said, will address “many of the concerns that people have” in areas like health care, education, social assistance, and “controlling the high cost of the rent.”
That would be a significant shift in the government’s strategy.
Steeves has warned several times in the last year that the province’s booming revenues were “temporary and not even sustainable,” as he put it last fall. The province needed to be cautious about increasing spending.
He was referring to major COVID funding transfers from Ottawa at the time.
However, according to economist Richard Saillant, the revenue boom is still strong, albeit now fueled by inflation.
According to Saillant, rising prices for goods and services and homes mean more sales and property tax revenue.
“Unless you can find a way to deflate your economy, it will be permanent…
Right now, there’s plenty of money available to address New Brunswickers’ concerns.”
For Monday’s event at a construction site, Steeves, who was dressed as a construction worker, also suggested that the government might reduce the extra property tax on apartment buildings as just a way to address the tight housing market.
The Conservatives announced a tax cut two years ago, but it was shelved when COVID-19 threw a wrench in their budget plans. It may return now.
Steeves would not say whether any tax cuts would be accompanied by measures to freeze or cap rent increases.
“You’ll have to wait for 24 hours, but guess what?” According to Steeves. “I would think that making this announcement in front of an apartment building would give you a pretty good idea of where we’re going with this.”
Source: CBC News
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