No giant New Brunswick budget surplus this year, finance minister says

A $160-million surge in health-care spending has deflated what had been another ballooning New Brunswick budget surplus, according to new figures released by the province on Tuesday.

In a quarterly update of his current-year budget forecasts, Finance Minister Ernie Steeves said a $199.6-million budget surplus he was projecting less than two months ago has mostly evaporated, almost entirely due tounbudgeted spending in the health department.

Citing higher operating and personnel costs in the regional health authoritiesand additional costs in medicare,the fiscal update revealed health spending is now projected to reach $3.75 billion by the end of March, $162 million over its original allotment.

Speaking to reporters, Steeves said he has no concerns at all about the extra spending in thatspecificdepartment.

"Absolutely, it is needed," he said

"What can you do?It's health, and it's our top priority right now."

Steeves was less generous in other areas, however.

He had no announcements to make about new "affordability" measures he has been talking about for several weeks to help people with the cost of living, including large numbers of low income and homeless people that he acknowledged are facing a tough winter.

"As the colder weather comes, certainly it becomes more and more imperative to help those who are disadvantaged. So I can't say it will happen before Christmas or in January but we are looking for new ways to help New Brunswickers," said Steeves.

"WouldI like todo more?Yeah I'd like to do a lot more but there are hard choices to be made, and saying yes is not something that happens a lot in this business."

In September,Steeves said he had a package of "affordabilitymeasures" he was ready to take to cabinet for approval, which then stalled in October when Premier Higgs said he might need to hang on to them for inclusionin an election platform.

On Wednesday, Steevessaid cabinet is still considering what to do.

"We see the need in New Brunswick.That is not lost on us, don't worry about that," he said.

Bathurst West-Beresford Liberal MLARen Legacyquestioned whether any new help is coming.

"We still haven't seen any of those measures announced," said Legacy about Steeves's September claim of an imminent aid package.

"I'm concerned that we're not going to see any of those."

Green Party MLA Kevin Arseneau said he too is worried that commitments Steevesmade for assistance are stalled,perhaps permanently.

"They promised to help New Brunswickers with the cost of livingand we are still waiting and we're waiting and we're waiting," said Arseneau."Every time someone asks it's,'We're talking about it,'" said Arseneau.

According to the updated forecast, the province is still projecting a budget surplus for the seventh year in a row, but a modestone at $35.3 million.

Over the three previous years Steeves had managed to pile up $2.2 billion in cumulative surpluses, including a record $1 billion last year.

But those were driven by galloping revenue increases and recordpopulation growth that Steeves said have been stabilizing.

As a consequence, the province is also budgeting for a $161.8-million increase in its net debt, the first increase in five years.