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New Brunswick Records $104.4 Million Deficit Amid Rising Health Costs

Editorial

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New Brunswick has concluded the 2024-25 fiscal year with a significant deficit of $104.4 million, a stark contrast to the $40.9 million surplus that was initially projected in the budget. Finance Minister René Legacy announced these figures in a recent fiscal update, attributing the shortfall largely to escalating costs in health care, education, and social programs.

The province’s net debt has also experienced a notable increase, rising from $11.8 billion to $12.3 billion. This upward trend in debt reflects the financial pressures faced by the government as it navigates increased spending demands in critical areas.

In terms of revenue, New Brunswick’s government primarily relied on taxes and federal transfers. Notably, the province secured $156 million as part of a settlement with three major tobacco companies, which were ordered to pay a total of $32.5 billion to governments across Canada. This settlement is intended to address health care costs associated with smoking-related illnesses.

The developments in New Brunswick mirror broader trends seen across many regions, where health care expenditures continue to climb due to various factors, including an aging population and increased service demands. As the government assesses its financial health, the focus will remain on managing these essential services while addressing the fiscal challenges ahead.

This report by The Canadian Press was first published on September 29, 2025.

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