News Release

SAINT JOHN (CNB) – Finance Minister Blaine Higgs launched the provincial government’s pre-budget consultation process at a luncheon speech hosted by the Saint John Board of Trade today.

Higgs said the revised deficit, reflecting information available to the end of September, will be more than $800 million for 2010-11, compared to the deficit of $749 million projected in the budget, due to higher-than-projected spending.  

Higgs will release an economic and fiscal update in the coming days. He said the large deficit will require that the provincial government, in partnership with people from across the province, find new and innovative ways to deliver services more efficiently.

“Our fiscal circumstances are unprecedented and simply unsustainable,” Higgs said. “We have to ask ourselves some tough questions. Our main goal is to get our fiscal house in order and return to balanced budgets over four years.”

Higgs noted that the provincial debt will grow to more than $9 billion at the end of the current fiscal year from $6.6 billion in 2006-07.

Tackling the fiscal challenge has already started, and doing so will be especially important in the government’s budget for 2011-12, he said.

Higgs announced a number of steps that will be taken to get as much public input as possible about the budget. Starting today, New Brunswickers can write or e-mail the Department of Finance with their budget suggestions.

In December, an online pre-budget questionnaire will be posted on the Department of Finance website. The questionnaire will ask what New Brunswickers view as priorities and how the provincial government can address the financial challenge.

Early in the new year, the minister will attend public meetings throughout the province to discuss budget priorities.

Pre-budget discussions will focus on three topics:

●    what should be the provincial government=s priorities for the 2011-12 budget?
●    should the provincial government raise additional revenues to address its fiscal challenge? If so, what measures should be undertaken?
●    should the provincial government reduce its spending in certain areas to address its fiscal challenge? If so, what measures should be undertaken?

“We need your help to make these choices,” said Higgs. “We need you to tell us how we can save money and where we have to spend. Together, we will act decisively to avoid passing this debt burden onto our children and grandchildren. I look forward to engaging in this discussion with New Brunswickers – a discussion that will help set the path for our future.”