Revenues increase, deficit projection lowered in second quarter
13 November 2015
FREDERICTON (GNB) – Revenue projections for the second quarter were up $37.1 million according to the provincial government’s latest fiscal update.
As a result, the projected deficit for 2015-16 has now been lowered to $453 million. This is an improvement of $23.7 million compared to the original deficit estimates.
Projections continue to include a $150 million contingency reserve.
“While this is an encouraging sign it is clear that we still have much work to do,” said Finance Minister Roger Melanson. “We have a problem and it needs to be addressed. We will be facing some significant decisions in the next budget as Strategic Program Review comes to an end and we present our plan to balance the province’s books.”
Overall expenses were $13.4 million higher than budgeted. One of the main drivers of the increase in expenditures was the higher-than-budgeted expenses under the Disaster Financial Assistance program.
On the revenue side, major changes include Personal Income Tax which is higher by $34 million.
In releasing the latest numbers, the government continues to fulfil its commitment to report quarterly based on fixed reporting dates.
The 2015-16 second-quarter report is available online.
Shawn Berry, communications, Department of Finance, 506-453-4138.