Government cuts in 2011-12 budget forecast to reduce deficit by more than half

The provincial government tabled its 2011-12 budget today at the legislative assembly, announcing significant spending reductions and increased revenue measures expected to result in a smaller deficit, projected at $448.8 million.

Finance Minister Blaine Higgs said the provincial government had been facing a $1-billion deficit if the spending trends of the past four years continued.

"Today's budget signifies a new direction: reversing our province's fiscal decline and restoring New Brunswickers' priorities and trust in government," said Higgs. "Our government has inherited a spending mess that cannot be fixed overnight. We are developing a plan to return to balanced budgets within our mandate and to encourage a growing, vibrant economy."

The $8.091-billion expenditure budget for 2011-12 represents a decline of 1.6 per cent from revised 2010-11 estimates. Demand and cost pressures have been offset by managing spending and implementing program restraint and efficiencies.

"This budget represents a first step toward a more balanced approach for New Brunswick," said Higgs. "We were able to make significant strides in this budget without increasing income taxes for middle- and lower-income earners; and to take New Brunswick in a new direction thanks to the input of our residents and civil servants. Truly, we are all in this together." (more)