Financial Update 1999-2000


Published by:
Department of Finance
Province of New Brunswick
P.O. Box 6000
Fredericton, New Brunswick
E3B 5H1
Canada

Internet: www.gnb.ca/finance

March 2000


Cover:
Communications New Brunswick (CNB 99516)

Translation:


Typesetting:
Queen’s Printer for New Brunswick


Printing and Binding:
Printing Services, Supply and Services




















ISBN 1-55236-479-8

Printed in New Brunswick

BUDGET PLAN / PROGRAMME BUDGÉTAIRE
1999-2000
Thousands / Milliers 
$



1999-2000
1999-2000


Budget
Revised


Estimate
Estimate
Change





1999-2000
1999-2000


Prévisions
Prévisions

Budgetary Accounts / Comptes budgétaires
budgétaires
révisées
Écart




Gross Ordinary Account Revenues / Recettes brutes au compte ordinaire 
4,355,558.8
4,451,679.2
+96,120.4
Gross Ordinary Account Expenditures / Dépenses brutes au compte ordinaire 
4,297,603.8
4,400,269.1
+102,665.3
Surplus on Ordinary Account / Excédent au compte ordinaire 
57,955.0
51,410.1
-6,544.9




Capital Account Expenditures / Dépenses au compte de capital 
283,461.5
303,447.8
+19,986.3
Capital Account Recoveries / Recouvrements au compte de capital 
38,557.3
40,244.9
+1,687.6
Net Capital Expenditures / Dépenses nettes au compte de capital 
244,904.2
263,202.9
-18,298.7




Special Purpose Account Revenues / Recettes au compte à but spécial 
36,908.8
37,673.3
+764.5
Special Purpose Account Expenditures / Dépenses au compte à but spécial 
36,776.3
35,625.4
-1,150.9
Surplus (Deficit) on Special Purpose Account / Excédent (Déficit) au compte à 
but spécial 

132.5

2,047.9

+1,915.4








Special Operating Agency Account Revenue / Recettes au compte des organismes 
de service spécial 

145,072.8

175,607.0

+30,534.2
Special Operating Agency Account Expenditure / Dépenses au compte des 
organismes de service spécial 

149,010.7

185,695.2

+36,684.5
Surplus (Deficit) on Special Operating Agency Account / Excédent (Deficit) au 
compte des organismes de service spécial 

(3,937.9)

(10,088.2)

-6,150.3




Sinking Fund Earnings / Gains du fonds d’amortissement 
203,000.0
203,000.0
0.0




Budgetary Surplus (Deficit) from Operations / Excédent (Deficit) budgétaire des 
opérations
12,245.4
(16,833.1)
-29,078.5








Other Items / Autres 



Fredericton-Moncton Highway / Autoroute de Fredericton à Moncton 

(882,500.0)

Voluntary Early Retirement Window / Programme de retraite anticipée volontaire 

(52,100.0)









(Increase) in Net Debt / (Augmentation) de la dette nette 

(951,433.1)


___________

Note:Columns may not add due to rounding. / Les chiffres ayant été arrondis, leur somme peut ne pas correspondre aux totaux in-
diqués.

Fiscal Performance Highlights

The 1999-2000 budgetary accounts are now forecast to be in a deficit position. The deficit is projected to be $16.8 million, an increase 
of $29.1 million when compared to the budgeted forecast surplus of $12.2 million.


Revenues

Budgetary revenues are now projected to be $4,773.3 million, up $116.1 million from the budget estimate of $4,657.2 million.

• 	Personal Income Tax revenue is $45.2 million higher than budget as a result of revised federal estimates.

• 	Corporate Income Tax revenue is $16.0 million lower than budget due to revised federal estimates.

• 	Provincial Real Property Tax revenue is $23.5 million lower than budget due to the forecasting base being lower than antici-
pated. The revised forecast incorporates an anticipated increase in the reserve that recognizes the difference between taxes as-
sessed on federal properties and the grant paid by the federal government, and an increase in the value of the owner-occupied 
property tax credit.

• 	Harmonized Sales Tax revenue is $33.7 million lower than budget because anticipated changes to the allocation formula are 
not likely to be completed before year-end. As a result, anticipated gains have been removed from forecast revenue.

• 	Return on Investment is $34.3 million higher than budget. Liquor profits are currently forecast to be $5.0 million higher than 
budget. N.B. Power is currently forecasting a $19.0 million profit, up from a budget forecast of nil.

• 	Fiscal Equalization Payments are $122.0 million higher than budget as a result of revised federal estimates.

• 	The Canada Health and Social Transfer is $45.2 million higher than budget as a result of revised federal estimates. This in-
crease includes $28 million in funding from the CHST Supplement Trust for Health Care established by the federal government 
in the 1999 Federal Budget.

• 	Harmonization Transitional Payments are $115.0 million lower than budget as a result of the Province changing its method of 
accounting for the payment. The transitional funding is now being recognized as revenue when the Province has fully satisfied 
the conditions attached to the funding and there is no possibility that revenue recognized could become repayable to the Federal 
Government. Using this accounting method $66.0 million will be recognized in 1999-2000, instead of the budgeted $181.0 mil-
lion.

• 	Conditional Grants From Canada are $12.1 million higher than budget as a result of recoveries related to flood and storm 
damage. These increased recoveries are offset by a corresponding increase in expenditures.

• 	Special Operating Agency revenue is $30.5 million higher than budget mainly due to increased revenues related to the New 
Brunswick Community College and Regional Development Corporation special operating agencies. This increase in revenue is 
offset by a corresponding increase in expenditure.


Expenditures

Budgetary expenditures are now projected to be $4,790.1 million, up $145.2 million from the budget estimate of $4,644.9 million.


Ordinary Account

• 	Department of Health and Community Services expenditures are higher than budget by $103.0 million. This includes addi-
tional funding for Region Hospital Corporations, Medicare, Long Term Care, Ambulance Services and the Prescription Drug 
Program.

• 	Municipalities and Housing expenditures are higher than budget by $15.7 million primarily due to flood damage. A significant 
portion of the flood damage costs will be recovered from the Federal Disaster Financial Assistance Program.

• 	Transportation is $9.8 million higher than budget primarily due to the Winter Maintenance program.

• 	Fisheries and Aquaculture expenditures are higher than budget by $7.0 million due to the Infectious Salmon Anemia Fish 
Health Surveillance Program.

• 	Natural Resources and Energy is $5.0 million higher than budget primarily due to fire suppression costs, a reflection of the 
severe forest fire season experienced in 1999.

• 	Legislative Assembly expenditures are higher than budget by $4.9 million due to the Provincial Election and Municipal by-
elections.

• 	General Government is lower than budget by $18.3 million due to pension expense and supplementary funding being less than 
originally budgeted. The lower expenditures are partially offset by higher Provision for Loss expense and increased demand for 
Strategic Assistance.

• 	Human Resource Development NB is lower than budget by $15.6 million due to a decline in the Social Assistance caseload.

• 	Education expenditures are $6.3 million lower than budget primarily due to the Student Assistance Program having less uptake 
than anticipated.

Capital Account

• 	Capital expenditures are higher than budget by $20.0 million primarily due to costs associated with infrastructure repairs in the 
Department of Transporation and the Solid Waste Management Program in the Department of Environment.

Special Operating Agency

• 	Special Operating Agency expenditures are higher than budget by $36.7 million due to increased programming in the New 
Brunswick Community College and special programming (Rural Experience and Community Pride) managed through the Re-
gional Development Corporation. These expenditures are offset by revenue from federal or provincial sources.

Other Items

• 	Changing the Fredericton – Moncton Highway from an operating lease to a capital lease will result in an increase in the prov-
ince’s net debt of $882.5 million.

• 	An estimated $52.1 million reflects an increase in the province’s net debt, for the Voluntary Early Retirement Window, based 
on 1,000 plan members electing to retire by March 31, 2002.

Economy

The New Brunswick economy performed well in 1999. Real GDP grew by 3.6% compared to the 2.3 % anticipated in the 1999 
Budget. A major reason for this growth was the 22.1% growth in investment during 1999. This growth was the result of a number of 
major projects, including the Fredericton to Moncton highway, the Irving Oil refinery expansion and the natural gas pipeline. 
Employment grew by 3.3% resulting in a drop in the unemployment rate to 10.2%, the lowest rate on record. The strong showing on 
the employment front contributed to a 5.1% growth in personal expenditures. In summary all major economic variables proved to be 
more positive in 1999 than anticipated in the 1999 Budget.




	
MAJOR ECONOMIC INDICATORS – 1999 / 
PRINCIPAUX INDICATEURS ÉCONOMIQUES – 1999
1999-2000 BUDGET AND REVISED / 
BUDGET 1999-2000 ET PRÉVISIONS RÉVISÉES
(Percent Change, Except Unemployment Rate) / (Changement en pourcentage, sauf pour le taux de chômage)
	

		Revised / 
BudgetRévisées

Real GDP / PIB (réel)2.33.6
Investment / Investissements8.622.1
Employment / Emploi1.93.3
Personal Expenditure / Dépenses personnelles3.45.1
CPI (New Brunswick) / IPC (Nouveau-Brunswick)1.71.6
Unemployment Rate / Taux de chômage11.610.2
	

GROSS BUDGETARY REVENUE / RECETTES BUDGÉTAIRES BRUTES
REVISED 1999-2000 / RÉVISÉES 1999-2000
Thousands / Milliers
$
Department / Ministère
Ordinary 
Account /
Compte
ordinaire

Capital 
Account / 
Compte 
de capital

Special 
Purpose 
Account / 
Compte à 
but 
spécial

Special 
Operating 
Agency /
Organismes 
de service 
spécial

Inter-
account 
Transactions 
/ Opérations 
inter-
comptes

Total:
Gross
Budgetary
Revenue /
Recettes
budgétaires
brutes
Agriculture and Rural Development / 
Agriculture et Aménagement rural
3,521.9

1,740.0

69.1





5,331.0
Economic Development, Tourism and Culture / 
Développement économique, Tourisme et 
Culture
10,620.2

23.4

2,848.0

748.8

(230.0)

14,010.4
Education / Éducation
17,949.3



6,104.1

86,299.3

(64,614.8)

45,737.9
Environment / Environnement
2,186.0



14,560.0





16,746.0
Finance / Finances
3,852,678.5



556.2





3,853,234.7
Fisheries and Aquaculture / Pêches et 
Aquaculture

4,359.6










4,359.6
Health and Community Services / Santé et 
Services communautaires

31,667.9




1,905.3






33,573.2
Human Resources Development / 
Développement des ressources humaines
70,201.6



4,124.0





74,325.6
Justice / Justice
37,010.9



317.4





37,328.3
Labour / Travail
89,772.3



1,444.2

3,263.3

(105.6)

94,374.2
Legislative Assembly / Assemblée législative
9.8









9.8
Maritime Provinces Higher Education 
Commission / Commission de l’enseignement 
supérieur des provinces Maritimes
803.0









803.0
Municipalities and Housing / Municipalités et 
Habitation
13,984.5

482.0

500.0





14,966.5
Natural Resources and Energy / Ressources 
naturelles et Énergie
81,589.0

150.0

1,170.0





82,909.0
Office of the Comptroller / Bureau du 
contrôleur
52.5









52.5
Other Agencies / Autres organismes
126,250.0









126,250.0
Regional Development Corporation / Société 
d’aménagement régional

16,759.8


3,553.7




22,440.8


(8,267.4)


34,486.9
Solicitor General / Solliciteur général
11,492.8



1,863.0





13,355.8
Supply and Services / Approvisionnement et 
Services

1,209.0


0.5


1,705.0






2,914.5
Transportation / Transports
 79,560.6

34,295.3

 507.0

62,854.8

 (61,681.5)

 115,536.2
TOTAL:
4,451,679.2

40,244.9

37,673.3

175,607.0

(134,899.3)

4,570,305.1
Sinking Fund Earnings / Gains du fonds 
d’amortissement











203,000.0
GROSS BUDGETARY REVENUE / 
RECETTES BUDGÉTAIRES BRUTES











4,773,305.1


GROSS BUDGETARY EXPENDITURE / DÉPENSES BUDGÉTAIRES BRUTES 
REVISED 1999-2000 / RÉVISÉES 1999-2000
Thousands / Milliers
$

Department / Ministère
Ordinar
y 
Account 
/
Compte
ordinair
e

Capital 
Account / 
Compte de 
capital

Special 
Purpose 
Account / 
Compte à 
but spécial

Special 
Operating 
Agency /
Organisme
s de service 
spécial

Inter-
account 
Transaction
s / 
Opérations 
inter-
comptes

Total: 
Gross 
Budgetary 
Expenditur
e / Dépenses 
budgétaires 
brutes
Agriculture and Rural Development / 
Agriculture et Aménagement rural

24,882.0


450.0


69.1






25,401.1
Economic Development, Tourism and Culture 
/ Développement économique, Tourisme et 
Culture
53,725.1

3,300.0

2,765.0

686.8

(230.0)

60,246.9
Education / Éducation
757,288.6

1,000.0

6,037.3

91,938.6

(64,614.8)

791,649.7
Environment / Environnement
10,934.4

14,761.0

14,560.0





40,255.4
Executive Council Office / Bureau du Conseil 
exécutif
3,434.3









3,434.3
Finance / Finances
20,509.2



56.2





20,565.4
Fisheries and Aquaculture / Pêches et 
Aquaculture
18,282.5









18,282.5
General Government / Gouvernement général
131,839.3

8,329.0







140,168.3
Health and Community Services / Santé et 
Services communautaires

1,479,374.1


2,800.0


1,565.3






1,483,739.4
Human Resources Development / 
Développement des ressources humaines 
361,365.7

900.0

1,087.8





363,353.5
Intergovernmental and Aboriginal Affairs / 
Affaires intergouvernementales et autochtones
2,730.0









2,730.0
Justice / Justice
33,624.4



360.5





33,984.9
Labour / Travail
125,721.4



3,213.2

3,263.3

(105.6)

132,092.3
Legislative Assembly / Assemblée législative
17,070.0









17,070.0
Maritime Provinces Higher Education 
Commission / Commission de l’enseignement 
supérieur des provinces Maritimes
160,473.0









160,473.0
Municipalities and Housing / Municipalités et 
Habitation
142,994.5

1,669.5

500.0





145,164.0
Natural Resources and Energy / Ressources 
naturelles et Énergie

84,500.2




1,191.1






85,691.3
Office of the Comptroller / Bureau du 
contrôleur
4,854.4









4,854.4
Office of the Premier / Cabinet du premier 
ministre
1,610.1









1,610.1
Regional Development Corporation / Société 
d’aménagement régional

55,337.5


7,217.3




26,014.3


(8,267.4)


80,301.7
Service of the Public Debt / Service de la dette 
publique

612,000.0










612,000.0
Solicitor General / Solliciteur général
74,271.3



1,993.0





76,264.3
Supply and Services / Approvisionnement et 
Services
81,693.6

53,235.0

1,746.9





136,675.5
Transportation / Transports
 141,753.5

209,786.0

 480.0

63,792.2

 (61,681.5)

 354,130.2
GROSS BUDGETARY EXPENDITURE / 
DÉPENSES BUDGÉTAIRES BRUTES

4,400,269.1


303,447.8


35,625.4


185,695.2


(134,899.3)


4,790,138.2



GROSS ORDINARY REVENUE BY SOURCE / 
RECETTES BRUTES AU COMPTE ORDINAIRE PAR SOURCE
Thousands / Milliers
$

OWN SOURCE / DE PROVENANCE INTERNE

1999-2000
Budget
Estimate

1999-2000
Prévisions
budgétaires

1999-2000
Revised
Estimate

1999-2000
Prévisions
révisées

Change



Écart

















































Taxes / Taxes et impôts






Personal Income Tax / Impôt sur le revenu des particuliers 

855,000.
0

900,170.0

+45,170.0
Corporate Income Tax / Impôt sur le revenu des corporations 

157,000.
0

141,001.0

-15,999.0
Metallic Minerals Tax / Taxe sur les minéraux métalliques 

4,000.0

4,000.0

0.0
Provincial Real Property Tax / Impôt foncier provincial 

268,500.
0

245,000.0

-23,500.0
Harmonized Sales Tax / Taxe de vente harmonisée 

641,700.
0

608,000.0

-33,700.0
Gasoline and Motive Fuel Tax / Taxe sur l’essence et les carburants 

173,000.
0

181,000.0

+8,000.0
Tobacco Tax / Taxe sur le tabac 

43,000.0

47,000.0

+4,000.0
Pari-Mutuel Tax / Taxe sur le pari mutuel 

60.0

60.0

0.0
Insurance Premium Tax / Taxe sur les primes d’assurance 

26,060.0

25,260.0

-800.0
Real Property Transfer Tax / Taxe sur le transfert de biens réels 

2,700.0

2,700.0

0.0
Large Corporation Capital Tax / Taxe sur le capital des grandes sociétés 

32,000.0

28,000.0

-4,000.0
Financial Corporation Capital Tax / Taxe sur le capital des corporations financières 

8,800.
0

8,000.
0

-800.0
Sub-Total: Taxes / Total partiel : taxes et impôts 

2,211,820.0

2,190,191.0

-21,629.0







Return on Investment / Produits de placements 

111,107.5

145,358.8

+34,251.3







Licenses and Permits / Licences et permis 

90,633.4

95,409.6

+4,776.2







Sale of Goods and Services / Vente de biens et services 

83,296.3

85,591.5

+2,295.2







Royalties / Redevances 

52,994.0

59,449.0

+6,455.0







Lottery Revenues / Recettes des loteries 

73,000.0

73,000.0

0.0







Fines and Penalties / Amendes et intérêts de pénalités 

1,718.5

1,410.0

-308.5







Miscellaneous / Recettes diverses 

12,860.6

18,922.0

+6,061.4







TOTAL: OWN SOURCE REVENUE / TOTAL : RECETTES DE 
PROVENANCE INTERNE 

2,637,430.3

2,669,331.9

+31,901.6







Unconditional Grants - Canada / Subventions inconditionnelles - Canada






Fiscal Equalization Payments / Paiements de péréquation 

1,035,000.0

1,156,975.0

+121,975.0
Canada Health and Social Transfer / Transfert canadien en matière de santé et de 
programmes sociaux 

324,000.0

369,170.0

+45,170.0







	Harmonization Transitional Payment / Paiements transitoires d’harmonisation 

181,000.0

66,000.0

-115,000.0
	Other / Autres 

 1,900.0

 1,900.0

 0.0
	Sub-Total: Unconditional grants - Canada / Total partiel : subventions 
inconditionnelles - Canada 

1,541,900.0

1,594,045.0

+52,145.0







Conditional Grants - Canada / Subventions conditionnelles - Canada 

176,228.5

188,302.3

+12,073.8







	TOTAL: GRANTS FROM CANADA / TOTAL : SUBVENTIONS DU 
CANADA 

1,718,128.5

1,782,347.3

+64,218.8
	TOTAL: GROSS ORDINARY REVENUE / RECETTES BRUTES AU 
COMPTE ORDINAIRE 

4,355,558.8

4,451,679.2

+96,120.4


GROSS ORDINARY ACCOUNT EXPENDITURES / 
DÉPENSES BRUTES AU COMPTE ORDINAIRE
Thousands / Milliers
$

Department / Ministère
1999-2000
Budget
Estimate

1999-2000
Prévisions
budgétaires

1999-2000
Revised
Estimate

1999-2000
Prévisions
révisées

Change



Écart










































Agriculture and Rural Development / Agriculture et Aménagement rural
24,010.0

24,882.0

+872.0
Economic Development, Tourism and Culture / Développement économique Tourisme et 
Culture
53,574.7

53,725.1

+150.4






Education / Éducation
763,630.2

757,288.6

-6,341.6
Environment / Environnement
10,934.4

10,934.4

0.0
Executive Council Office / Bureau du Conseil exécutif
3,594.3

3,434.3

-160.0
Finance / Finances
20,909.2

20,509.2

-400.0
Fisheries and Aquaculture / Pêches et Aquaculture
11,252.5

18,282.5

+7,030.0
General Government / Gouvernement général
150,165.5

131,839.3

-18,326.2
Health and Community Services / Santé et Services communautaires
1,376,332.5

1,479,374.1

+103,041.6
Human Resources Development / Développement des ressources humaines
376,965.7

361,365.7

-15,600.0
Intergovernmental and Aboriginal Affairs / Affaires intergouvernementales et autochtones
2,730.0

2,730.0

0.0
Justice / Justice
32,840.3

33,624.4

+784.1
Labour / Travail
132,078.7

125,721.4

-6,357.3
Legislative Assembly / Assemblée législative
12,153.9

17,070.0

+4,916.1
Maritime Provinces Higher Education Commission / Commission de l’enseignement 
supérieur des provinces Maritimes
160,491.1

160,473.0

-18.1






Municipalities and Housing / Municipalités et Habitation
127,303.4

142,994.5

+15,691.1
Natural Resources and Energy / Ressources naturelles et Énergie
79,463.6

84,500.2

+5,036.6
Office of the Comptroller / Bureau du contrôleur
4,854.4

4,854.4

0.0
Office of the Premier / Cabinet du premier ministre
1,611.1

1,610.1

-1.0
Regional Development Corporation / Société d’aménagement régional
56,028.2

55,337.5

-690.7
Service of the Public Debt / Service de la dette publique
610,000.0

612,000.0

+2,000.0
Solicitor General / Solliciteur général
72,854.3

74,271.3

+1,417.0
Supply and Services / Approvisionnement et Services
81,879.2

81,693.6

-185.6
Transportation / Transports
131,946.6

141,753.5

+9,806.9
Gross Ordinary Account Expenditure / Dépenses brutes au compte ordinaire
4,297,603.8

4,400,269.1

+102,665.3