The Alward government unveiled a capital budget of $466 million on Tuesday.

The 2013-14 budget, presented by Finance Minister Blaine Higgs, represents a 6.3 per cent increase from the $438 million originally forecast in last year's three-year plan.

Only $3.5 million of the total is to start new construction or renovation projects, down from $24 million last year. The rest is for continuing projects already underway.

"Our government's priorities are maintaining existing assets today to avoid greater costs down the road while completing the projects currently underway in the most timely, cost-effective manner possible," said Higgs.

"At the same time, as we rebuild our province’s finances, we do not believe we are in a financial position to fund a significant number of new projects."

$280M for roads

Finance Minister Blaine Higgs says only $3.5 million has been approved for new projects in an effort to address the province's serious fiscal challenges. (CBC)

The Department of Transportation will see the bulk of the funding, with $279.6 million allocated for road maintenance, repair and construction, including a number of cost-shared projects with the federal government, said Higgs.

Of that, $2.2 million will go toward capital construction/infrastructure. However, no money has been allocated for any new road construction in 2014-15 or 2015-16, the budget shows.

Last week, Auditor General Kim MacPherson urged the Alward government in her annual report to spend more on road repairs to avoid the need for even more expensive work in the future.

Higgs said the government agrees with the auditor general that investments today can save money down the road. "At the same time, we believe that there is need to make smarter investments in road infrastructure," he said.

"As a province, we need to examine not just the amount of money we spend, but how we spend it. We need to ask ourselves how we can get more value for fewer dollars by ensuring that we are maintaining the standards necessary for safe travel in New Brunswick."

The education department will receive $120.8 million for public schools and another $7 million for universities and community colleges, Higgs said.

Meanwhile, the Alward government plans to spend about $53.2 million on maintaining and improving health care infrastructure, including starting to work on a new hospital in Perth-Andover, he said.

'In these challenging fiscal times, we have an obligation to ensure that this infrastructure is modern, safe and well maintained. However, we also have an obligation to ensure that we live within our means.'—Finance Minister Blaine Higgs

Health Minister Ted Flemming had hinted the government would replace the existing hospital, which was damaged by flooding in March, with a new building on higher ground.

About $22.3 million of the health funding will be used for capital improvement and construction, while $30.9 million will go toward the replacement of medical equipment, said Higgs.

"Mr. Speaker, our schools, hospitals, roads and public buildings are used by hundreds of thousands of New Brunswickers each and every day. In these challenging fiscal times, we have an obligation to ensure that this infrastructure is modern, safe and well maintained. However, we also have an obligation to ensure that we live within our means when investing in our province’s infrastructure," he said.

The government's rolling three-year plan now forecasts a $513.9 million capital budget next year, which is an election year. That's up from the previous $487 million projection.

The multi-year plan projects capital spending of $420.7 million in 2015-16, which will include a pool of funds set aside for new projects, separate from regular maintenance and replacement expenditures faced each year, said Higgs.

"Having this pool of funds as part of our multi-year projections will allow us to consider new capital project needs in the future without deviating from the spending targets we are establishing today,” he said.

"Rest assured, Mr. Speaker, going forward our capital plan will focus on investments in infrastructure that support long-term economic growth, fiscal responsibility and prosperity, while encouraging greater private sector involvement in the economy," Higgs said.

The full 2013-14 budget will tabled in March.

The provincial government has been struggling with a growing deficit, now projected to be $356 million.