Release
Department of Finance and Treasury Board
August 19, 2025
FREDERICTON (GNB) – The government has released its first-quarter update for the 2025-26 fiscal year.
Projections show a deficit of $668.7 million, compared to the budgeted deficit of $549 million.
“Despite our economy showing some resiliency in the face of United States tariff-related uncertainties, it’s clear that pressures around spending and affordability remain,” said Finance and Treasury Board Minister René Legacy.
Total revenue is projected to be $59.6 million lower than budget. While the change is due, in part, to decreased federal conditional grants, especially under the Integrated Bilateral Agreement, unstable trade conditions are beginning to affect projections.
Total expenses are projected to exceed the budget by $60 million this fiscal year.
“Rethinking how we deliver services is imperative if we are going to see meaningful change, which is not only important for the bottom line, but is even more important for New Brunswickers,” said Legacy. “But results take time, and while we are starting to see examples of service delivery being done differently, with better results, it won’t happen overnight.”
The expense overages are mainly due to increased costs in the departments of Social Development and Health.
Legacy reiterated that the government stands by investments made in these priority areas to provide access to the programs, services and care that New Brunswickers need, when and how they need them.
“We will not sacrifice investments in health and social development or addressing the very real affordability challenges New Brunswickers are facing in favour of only satisfying the bottom line,” said Legacy. “This update reflects the ongoing needs of the people in our province.”
The department estimates 0.9 per cent economic growth for the province in 2025, slightly below the private sector forecasters’ average of 1.2 per cent.
The first-quarter results are available online.
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Media Contact(s)
Mir Hyder, communications, Department of Finance and Treasury Board, [email protected].