New Brunswick could see a deficit of $1.19 billion this fiscal year because of the COVID-19 pandemic.
That is according to a new report released this week by Scotiabank senior economist Marc Desormeaux.
The deficit is a far cry from the $92-million surplus the Higgs government had projected before the pandemic.
According to the report, New Brunswick’s net debt will balloon from $13.8 billion to just over $15 million. The province had expected to reduce its net debt by $129 million.
A spokesperson for the Department of Finance said they know this pandemic is having a “significant impact” on the province’s economy and will impact government’s finances.
“It will take some time to determine the impact this situation will have on our finances. The Department will provide an economic and fiscal update at an appropriate time,” wrote Vicky Deschnes in an email.
Deschnes said the crisis underscores the importance for government of “building fiscal flexibility and being disciplined during stable economic times.”
New Brunswick is not alone in feeling the economic and financial impacts caused by the COVID-19 pandemic.
Scotiabank said all provinces will experience deficits during the 2020-21 fiscal year, with only Nova Scotia and Saskatchewan likely to avoid record deficits.
Nova Scotia was projecting a $55-million surplus, but the report forecasts a deficit of $970 million.
Meanwhile, Quebec is forecast to see a deficit of $15.5 billion compared to a budgeted surplus of $2.7 billion.
