Overview

• The first-quarter update raises the shortfall from the $549 million projected in March to $668.7 million for 2025–26.
• Revenues are $59.6 million below budget, reflecting weaker federal conditional grants, reduced special-purpose and agency funding, and lower returns from NB Power, partly offset by higher licence fees, sales, and sinking fund earnings.
• Spending is about $60 million above plan, led by Social Development over budget by $93.7 million and Health by $39.1 million, with added pressures in child and youth services, income support, and long-term care.
• Net debt is now expected to climb from roughly $12.5 billion to about $13.6 billion by fiscal year-end.
• The province pegs GDP growth at 0.9 percent versus a 1.2 percent private-sector average and flags unstable trade conditions tied to U.S. tariffs, while monitoring wildfire and drought costs that remain within current allocations.