FREDERICTON — The New Brunswick government is revising its budget deficit upward by almost 22 per cent.
In an update, the province says its deficit is now projected to be $668.7 million for the 2025-26 fiscal year, up from the $549 million forecast in the March budget.
Revenues are expected to be $59.6 million lower than forecast in the budget, and expenses are projected to be $60 million higher than the March estimate.
The province is blaming the downturn in its finances on a drop in federal grants, and says "unstable trade conditions" are starting to influence its projections.
The government estimates the province's GDP will grow by 0.9 per cent for the year — lower than the private sector forecast average of 1.2 per cent.
Finance Minister René Legacy attributed the increase in spending to higher costs in health and long-term care, seniors, and child and youth welfare.
This report by The Canadian Press was first published Aug. 19, 2025.
The Canadian Press
