New Brunswick faces a 'serious deficit position': Roger Melanson

Finance Minister Roger Melanson whittled down the provinces projected deficit to $255 million in the provinces third quarter fiscal update.

The finance minister released the fiscal update on Friday that showed the projected deficit is $136 million below the original $391.1 million.

This is welcome news, however, the province is still in a serious deficit position, said Finance Minister Roger Melanson in a statement.

More work and more difficult decisions are needed to right our fiscal ship and move New Brunswick forward.

The departments of public safety, transportation and infrastructure and social development are a total of $83 million over budget.

However, government revenue is up, mainly from tax payments, federal funding recoveries and NB Power income.

The provincial government has launched a strategic program review, which is attempting to identify $600 million in savings, either through program cuts or increased revenue.

We are taking this initiative seriously, said Melanson in a statement.

We need to get to a point where we can provide programs and services in an equitable and sustainable manner, and we cannot do that if we are constantly in a deficit position. We need a balanced approach to reducing the cost of government, increasing revenues, and encouraging private-sector investment.