Provincial budget gets mixed reaction from business, social justice advocate

Some observers give the provincial government praise for starting to pay down the debt, but there is less enthusiasm for other parts of the budget delivered this week.

Moncton-based economist Richard Saillantsaid he expected more from the budget, the first to be presented by the Progressive Conservative government of Blaine Higgs.

"I just felt that it was somewhat, not anticlimactic, but lacking in details," Saillanttold Information Morning Moncton on Wednesday.

He said Finance Minister Ernie Steeves's job was made easier by December's capital budget and increased transfer payments from Ottawa.

The capital budget did most of the government's "heavy lifting," which made the overall budget, with a projected surplus of $23 million, easier to construct, Saillant said.

The capital budget scaled back infrastructure spending by almost a third, and much of the province's revenue growth can be attributed toa $149.5 million boost in federal equalization.

"I was a bit surprised to see how important the revenue growth [was] from Ottawa," said Saillant.

"So if the province scored a balanced budget, I think the assist needs to go to Ottawa, to use hockey terms."

John Wishart, CEO of the Greater Moncton Chamber of Commerce, said a broader vision for the economy is still missing from provincial spending plans, but starting to pay down the debt is a good start.

"It's been 13 years since we made a payment on the debt," Wishart said.

"If you had a credit card that was maxed out, and you only paid interest for 13 years, you know you'd find yourself in pretty bad shape. So I think that that sends the right signal."

Social development

While the Department of Social Development saw its overall budget increase, several high-profile areas in the department saw their budgets cut.

They include cuts for child welfare, social assistance and housing services.

"That is scary," said Pauline Gallant, co-chair of the Common Front for Social Justice.

"When we talk about trying to get New Brunswick moving, the first thing you've got to do tomove the economy is to get people out of poverty. And he's made major cuts in our most vulnerable in this society."

Gallant said she understands the debt needs to be paid down, but there are vulnerable people who need help.

She cited continuing concerns abouthomelessness, especially in the winter.

Gallant said the province should have focused on increasing revenues, instead of just cutting expenditures.

"We have a lot of people in this province that are very wealthy," said Gallant.

"If they need money, there's better ways to get it than from the most vulnerable people, who are in the most need of money."

Work to do

Wishart said he was disappointed the budget didn't include any mention on eliminating the small business tax or removing double taxation on rental properties.

Saillantsaid he would have liked to see more plans for how the province plans to grow the economy and a greater focus on immigration.

"There's one mention of immigration," said Saillant. "It's for attracting more nurses.

"The biggest problem that we have in the economy today is drawing more workers, so that businesses can stay open and grow."

Saillantsaid the province will eventually have to focus on finding more savings, instead of picking up small savings along the way

"It's not with removing the front licence plate that we will grow the economy that much."