N.B. Liberals set to release deficit budget
Last Updated: Tuesday, December 1, 2009 | 6:47 AM AT
CBC News
Finance Minister Greg Byrne will reveal the Liberal government's final budget before the September 2010 election on Tuesday afternoon.
Byrne has already telegraphed the fact the budget will post another deficit in 2010-2011 and that last year's projected $742-million shortfall has grown.
The finance minister is expected to deliver the budget speech at 3 p.m. AT.
This will be Byrne's first budget speech since moving over from Business New Brunswick in this summer's cabinet shuffle.
Normally, the New Brunswick government releases its budget in mid-March, but Premier Shawn Graham announced the annual financial plan would come three months early so the province could lay out a plan to continue tackling the economic downturn.
Byrne will also roll out a plan to spend more than $1 billion on infrastructure in 2010-2011.
Graham refused to say more about the infrastructure spending plan when asked last week, other than that it's expected to create 9,000 jobs.
In last year's budget, the Liberals unveiled a two-year capital budget of $1.2 billion. Then finance minister Victor Boudreau said $660 million would be spent in the first year.
Now the Liberals are expected to boost that two-year amount to $1.6 billion, meaning additional spending of close to $1 billion in 2010-11 alone.
Debt rising
Byrne told reporters that the infusion of more infrastructure funds will add to New Brunswick's $7.4-billion debt.
The provincial debt in New Brunswick increased by $438.6 million in the 2008-09 fiscal year.
Byrne said the Liberal government has a plan to return to a balanced budget and start paying down its growing debt.
But the finance minister said that debt repayment plan will likely not happen by 2013, the government's original target for getting back in the black.
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