Five Highlights of the New Brunswick Budget
FREDERICTON – The 2017-18 budget released Tuesday is aiming to get New Brunswick to a balanced budget by 2020-21 by reducing the deficit without making cuts to social programs.
New Brunswickers will see increases in education, tourism and health care spending and a lowered Small Business Corporate Income Tax rate. The budget also outlines areas of focus for economic growth in the province.
When asked why the provincial government is not eliminating the deficit faster, rather than increasing spending, Rogers said that the balanced approach came from consulting with New Brunswickers.
“New Brunswickers told us to take a balanced approach and we listened … We identified a number of areas where we could find efficiencies, thereby expenditure reductions, but also increase our revenues. HST was one of the revenue pieces.
“We again chose to take the slower, steady approach to finding fiscal balance so that we can continue to invest in the priorities of New Brunswickers and not make deep cuts in health and education.”
The government is aiming to decrease the deficit from 2016-17’s $231 million to $191.9 million in 2017-18. The net debt is expected to increase from just under $14 billion to $14.4 billion.
Lower Small Business Income Tax Rate
Effective April 1 of this year, the Small Business Income Tax rate will decrease from 3.5 per cent to 3 per cent. That puts New Brunswick on par with Nova Scotia and Newfoundland and Labrador and ahead of the PEI rate of 4.5 per cent.
The government is also hoping to support the establishment and growth of business in the province by launching the “Agile Business Services Initiative,” which will aim to help identify which services to businesses are working and which require improvement.
Education Spending Increase
The budget outlines an increase of 4.9 per cent to $1.19 billion for the Department of Education and Early Childhood Development along with a 5.4 per cent increase to $619 million for Post-Secondary Education.
Tourism Budget Increase
The Department of Tourism, Heritage and Culture budget is getting a 17.6 per cent jump in an effort to tap into potential economic growth in the tourism industry.
Health Care Budget Increase
Credited in part to the agreement struck with the federal government, this year’s budget for health care will increase by 3.3 per cent to $2.65 billion.
12 Opportunities for Growth
The government states it’s working on 12 opportunities for growth it hopes will spur economic return in the province: Smart Grid, boosting new farmers, cybersecurity, blueberry development, home-based work, business support services, marijuana, local food and beverages, tourism, maple syrup and maple syrup tourism, Energy East and Sisson Mine.