FREDERICTON, N.B. – Despite decreased expenses over the last quarter, the provincial government is projecting a third quarter deficit of $411 million in 2012-13, which is an increase of $54 million over the second quarter report.
"As expected, the slow global economic recovery is continuing to negatively impact revenues, and they are currently tracking almost $200 million less than projected," said Finance Minister Blaine Higgs. "We need to look at new revenue options for the future so that we can address this shortfall and continue rebuilding our province's finances."
Overall expense projections are projected to be $19 million less than the second quarter despite an estimated $53-million increase in pension expense due to the adoption of new actuarial mortality tables, which were updated for the first time in nearly a decade. Personal income tax, corporate income tax, tobacco tax and royalty revenues are among the revenues down at third quarter.
"Thanks to the efforts of our public servants, we are continuing to see success in reducing expenses across government," said Higgs. "Expenses are down across government since last quarter and, if not for the unexpected pension expense, operational spending would be under budget."
LINK: Department of Finance