Finance minister promises a budget 'New Brunswick wants'

The Higgs government will begin plotting a post-COVID fiscal direction for the province with the tabling of a new provincial budget Tuesday.

And after two consecutive years in which spending plans were thrown into turmoil by the pandemic, it looks like budget "stability" could mean more money for key services. 

"Last year I said our budget was one that I didn't want to deliver, but that New Brunswick needed," Finance Minister Steeves said at a photo opportunity Monday, referring to last year's deficit projections.

"This year I have a budget that I want to deliver and that New Brunswick needs, and that I believe New Brunswick wants." 

Steeves initially budgeted a $244 million deficit for this year, but massive federal pandemic spending and a roaring economy turned it into a projected $487.8 million surplus.

Premier Blaine Higgs said two weeks ago the roller coaster pandemic budgeting of the last two years would give way to more stable and predictable fiscal planning.

He said this year's budget would address "many of the concerns that people are having" in areas such as health care, education, social assistance and "controlling the high cost of rent."

That would represent a shift in the government's approach. 

Steeves has cautioned several times over the last year that the province's booming revenues were "temporary and not really sustainable," as he put it last fall, and that meant the province had to be careful about spending more.

He was referring at the time to major COVID funding transfers from Ottawa.

But economist Richard Saillant says the revenue boom is continuing, now driven by inflation.

Rising prices on goods and services, and on homes, means more sales and property tax revenue, Saillant says.

"It's a permanent effect unless you find a way to disinflate your economy …There's plenty of money right now to address the priorities of New Brunswickers."

Steeves, dressed as a construction worker for Monday's event at a construction site, also suggested the government may reduce the extra property tax on apartment buildings as a way to address a tight housing market.