Holt Liberals projecting larger-than-forecast deficit this year
The Holt Liberal government is on track to run an even bigger budget deficit than projected in its first full year in power.
The deficit is now projected to hit $668.7 million this year, almost $120 million more than Finance Minister René Legacy forecast in his first budget in March.
That additional shortfall is because the government expects to spend $60 million more than planned this year, and to bring in $59.6 million less in revenue, according to a first-quarter fiscal update Legacy released Tuesday.
The higher-than-expected spending includes $93.7 million in areas such as child welfare and youth services, social assistance, and seniors and long-term care, and $39.1 million in higher spending by regional health authorities.
Those increases are partly offset by lower-than-predicted spending in some other areas.
The decreased revenue includes a $16.2-million shortfall due to lower earnings at N.B. Power.
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