Finance Minister Greg Byrne talks to reporters in a budget news conference on Tuesday. (Daniel McHardie/CBC)

New Brunswickers will watch as an $896-million capital spending plan rolls out in the months leading up to the September provincial election.

Finance Minister Greg Byrne billed the massive infusion of cash into infrastructure spending as a way to stimulate the province's economy, which saw a decline in growth in 2009 and is slated for only modest growth in 2010.

"This government has always recognized the importance of investing in new and upgraded public infrastructure as a tool for stimulating, growing and diversifying our economy," Byrne said in his budget speech.

The finance minister said the increased spending was intended to help the province emerge from the economic downturn and was not timed to coincide with the upcoming election.

Byrne told reporters at a news conference on Tuesday that large capital budgets won't be possible in the future as the province wrestles down the deficit.

The 2010-11 deficit is expected to reach $749 million, down slightly from $754 million in 2009-10.

4 new schools

Heading into an election year, the Liberal government is planning a series of new capital projects along with forging ahead on previously made commitments.

The Department of Education is receiving $97 million in funds to move ahead on a series of new schools around the province.

Byrne's budget announced new schools in Riverview, Kennebecasis, Moncton and Fredericton that are targeting high growth areas.

"These projects will address aging infrastructure and capacity issues due to changing demographics," Byrne said in his speech.

Those four schools will all be funded through a public-private partnership model. However, the Department of Education is expected to announce additional new schools that will be funded solely by the province.

Transportation projects

The capital budget is earmarking $423.4 million for a series of transportation improvements. The largest chunk of that spending envelope, almost $280 million, will go toward upgrading and adding to the network of highways, roads and bridges.

Another $97.6 million will be spent on a series of federal-provincial highway projects, such as the Welsford Bypass north of Saint John, the One Mile House interchange in Saint John and the Marysville Bypass near Fredericton.

New Brunswick's hospital infrastructure will also be getting a significant facelift thanks to the capital budget.

There will be expansion projects at the Dr. Georges-L Dumont Regional Hospital in Moncton and the Saint John Regional Hospital's emergency room.

As well, the budget is setting aside funds to improve the laboratory medicine and medical imaging departments at the Grand Falls General Hospital and improved accommodations at the Chaleur Regional Hospital.

Public investments

Along with the lengthy list of new infrastructure projects being funded, Byrne also announced a series of other new spending initiatives that will be implemented in the final months before the Sept. 27 election.

The province is extending the university tuition fee freeze for a third year and tuition levels at community colleges will be frozen for a fifth year.

"Students make a huge investment in their post-secondary education: an investment that pays future dividends to the student, to the province and to our goal of self-sufficiency," Byrne's said in his budget speech.

The finance minister is also committing $15 million in a series of poverty reduction measures in 2010-11.

Byrne said the upcoming social assistance reforms will "make it the most progressive social assistance system in the country."

The first change will be the 80 per cent increase in social assistance rates for single employable clients.