NB 1197
Dec. 16, 2003
FREDERICTON (CNB) - The Government of New Brunswick is facing considerable fiscal challenges but remains committed to balanced budgets, Finance Minister Jeannot Volpé said today.
A surplus of $7.5 million was projected when the 2003-04 budget was brought down last December. Since that time, the national and provincial economies have weakened, the cost of health care keeps rising, and the pension expense is higher due to weaker-than-anticipated market returns in 2002.
"Our goal is to balance the books for 2003-04, but it will be very difficult," Volpé said. "Nevertheless, with continued fiscal discipline and prudence, we intend to meet the objectives of the balanced budget legislation over the four-year cycle ending March 31, 2004."
The minister said the government has already taken "prudent, proactive steps to control expenditures," such as a one-time reduction to selected programs in government departments.
He also looked ahead, saying the Province faces difficult challenges and difficult decisions in the upcoming fiscal year, 2004-05.
"Health care pressures are driving the spending up," Volpé said. "The costs are continually growing in areas such as the Prescription Drug Program, Medicare and Hospital Services."
Other challenges include a heavy collective bargaining calendar; lower federal transfer payments due to census-related adjustments; the lack of sustainable health-care funding from the federal government, and an equalization formula that is insufficient.
"These challenges are obviously significant, but they are comparable to challenges faced by the other provinces," the minister said. "The decisions that we face are not easy, but they are necessary."
Government has already set up a committee of cabinet ministers called the Resource Maximization Committee. The committee has a mandate to evaluate 600 government programs and services to determine if they meet government objectives and provide the greatest value to taxpayers.
"This is not a one-time exercise for one budget - it will provide a framework for new service delivery innovation," Volpé added. "We will take further decisions to confront and conquer the overall fiscal challenges that we are facing. Our goal is clear. We will have balanced books over the course of our mandate."
The minister also said the current private sector consensus for New Brunswick's economy is real GDP growth of 2.1 per cent in 2003 and 2.7 per cent in 2004.
03/12/16
EDITOR'S NOTE - The complete text of the minister's speech will be posted online at: http://www.gnb.ca/0024/index-e.asp. MEDIA CONTACTS: Ann Deveau or Vicky Deschênes, communications, Finance, 506-453-2451, fax 506-457-4989, e-mail, wwwfin@gnb.ca.
03/12/16