N.B. government projecting deficit in 2024-25 fiscal, blames travel nurses for increase in expenses
CTV
The New Brunswick government has released its budget projections for the 2024-25 fiscal year, saying it now shows a deficit of $27.6 million compared to an initial surplus of $40.9 million.
The Blaine Higgs government in New Brunswick has released its budget projections for the 2024-25 fiscal year, saying it now shows a deficit of $27.6 million compared to an initial surplus of $40.9 million.
Officials within the Department of Finance and Treasury Board say the culprit for the change is mostly due to greater health-care expenses.
Nick McCann, assistant deputy minister in the department, said health expenses are up $164 million because of higher operating and personnel costs - mostly travel nursing contracts, overtime and the training of new staff.
He said the first quarter showed travel nursing contracts will cost the province $97 million total for the 2024-25 fiscal year – mostly within the Vitalité Health Network.
Horizon Health has said it won’t need travel nurses by the end of September, and finance officials say that’s reflective in their forecasts.
The last time New Brunswick had a projected deficit was in the 2020-2021 fiscal year – but it later turned into a surplus.
The last time the province saw an actual deficit was in the 2017 budget year. However, Finance Minister Ernie Steeves says he’s confident by the end of the fiscal year, there will be a balanced budget.
