FREDERICTION (CNB) – The provincial government has approved more than 100 cost-cutting measures to reduce this year’s projected deficit by about $42.9 million, mostly by trimming administrative budgets, taking advantage of staff attrition and eliminating non-essential expenditures, Finance Minister Blaine Higgs announced today.

“The savings we have been able to accomplish to date are very important, but there is still a great deal to be done,” said Higgs. “This was a way of helping to reverse a culture of spending in government. The savings that have, and will be accomplished, are an important tool in getting our finances back on track, but we will be looking at many more options to help in this endeavour in the months ahead.”

“We are well on our way to accomplishing one-per-cent savings across the government,” said Higgs. “These immediate savings will put New Brunswick’s public finances on a more steady footing.”

Departments were asked to achieve a one-per-cent budget reduction within the 2010-11 fiscal year to reduce the deficit, forecast to reach $820 million.

While each department has developed a budget reduction plan, Higgs said a number of cost-saving measures will be implemented across all branches of the government, where applicable. They include:      

  • eliminating non-essential travel;
  • reducing spending on external consultants and printing;
  • delaying the filling of vacant positions determined to be non-essential;
  • reducing non-essential budgets assigned to training, professional development and marketing; and
  • reducing expenditures for office equipment, supplies, furniture and software.

Major departments have contributed to the budget plan in the following ways:

  • the Department of Education and Early Childhood Development has found $9.9 million in savings by reducing central office and district spending with no impact on classroom learning. This includes savings on the costs of computer hardware and software, travel, professional development and staff vacancies.
  • the Department of Health has made a commitment to reduce spending at its central office and the two regional health authorities by $8.4 million. This includes:

o   suspending until April 1 all subsidies, bursaries and incentives paid to nurse practitioners, allied health professionals and physicians;

o   reducing costs to the prescription drug program by changing a limited number of drug benefits and;

o   consulting with the New Brunswick Medical Society to identify elective services that could be de-insured.

  • The Department of Social Development has found $9.8 million in savings including, for example, by reducing administrative costs, deferring grants paid under the Energy Efficiency Retrofit Program, reducing contingency funding regarding its nursing home replacement plan, and reductions in the public housing maintenance and improvement budgets.

“We appreciate the commitment and discipline that our employees are demonstrating in ways to save money that have minimal impact on front-line services,” said Higgs.

The complete list of approved cost-cutting measures is online.

LINK:

 

13-01-11