New Brunswick business community surprised by Higgs's deficit-free promise

The province's business community was stunned to learn this week, that New Brunswick'sPC government wiped awaya projected$131-million deficit in the current 2018-19 fiscal year.

PremierBlaineHiggsmade the announcement Thursday evening during his first State of the Province speech at a dinner hosted by the Fredericton Chamber of Commerce.

"It's challenging for any new government as they come in," saidKristaRoss, the chief executive officerof the Fredericton Chamber of Commerce.

But Ross saidtheysupportinitiativesgovernment is focusing on to help build business.

"Whether it be, you know, natural resource development, or changes to taxation just an environment in which business can grow and prosper," she said.

With only two months remaining in thefiscal year, Higgsalso noted in his speech thatthe upcoming 2019-20 budget will be balanced.

But the latest state of the province addressdidn'tsit aswell with New Brunswick'sLiberal party.

"This is basically our budget that is being balanced, and he's [Higgs] balancing on cutbacks," said Liberal MLA Guy Arseneault following the speech.

"He's cutting back on hospitals, he's cutting back on healthcare, he's cutting back on infrastructure and we [Liberals] invested in those three and declared a surplus."

Deficit wiped out sooner than expected

During last year'selection campaign, Higgs saidhis government would deliver a balanced budget by2020-2021.

He said the books could be balanced earlierthan expectedbecause the deficit was inflated underthe previous Liberal government.

"The government chose to dump expenses into the year of the election, inflate it so they can make it look like it's coming down later," Higgs told reporters after his speech.

"We're just not out spending it we're saying can we balance this year? And the department is telling me we can do it, and I believe in their ability to do it."

Thomas Raffy, president and chief executive officer of the Conseil conomique du Nouveau-Brunswick Inc., said there's hope in what the premier promised in his speech, but he said details are yet to be seen.

"At this stage it's good to see that the government is tackling the debt and trying to balance the budget," he said.

Raffy saidhe's waiting to see how Higgs's planswill be laid out duringnext month'sbudget.

"We have to wait until March 19 to see how it will be balanced," he said.