Budget 2024-25 – Stronger than Ever: Let’s Keep Building

Press Release

19 March 2024

FREDERICTON– The provincial government has tabled its 2024-25 budget, delivering the biggest health-care budget in New Brunswick’s history, as well as outlining investments in other priority areas such as housing, supporting vulnerable populations and education.

“Despite the challenges we have faced since 2018, we are building a stronger province, and we also recognize that there is a lot more to do,” said Finance and Treasury Board Minister Ernie Steeves. “We have gone from a province that had weak economic and population growth, and unsustainable public finances, to a province with a much healthier economy with significant growth potential and sustainable public finances, which should be a point of pride for New Brunswickers.”

Economic and fiscal conditions

“Government’s commitment to economic growth and stability is reflected in the stronger and more prosperous New Brunswick we live in today,” said Steeves. “It is important to maintain this momentum by driving our economy forward through continued population growth, transitioning to a cleaner energy future and building on the strength of our traditional natural resources.”

Revenues and expenses are projected to be $13.3 billion, with spending projected to increase by 6.4 per cent over 2023-24 third-quarter estimates.

The Department of Finance and Treasury Board projects real GDP growth of 0.7 per cent in 2024, consistent with private sector forecasters.

Steeves said the net debt-to-GDP ratio is at its lowest level in 16 years and is projected to be the lowest among the provinces east of Saskatchewan.

Dependable public health care

The budget allocates nearly $3.8 billion to the health-care system, with a focus on developing a system that is innovative and patient-focused, and delivers timely access to health services when New Brunswickers need them. This includes $70 million to help stabilize and ease pressures within the regional health authorities, and almost $23 million to fund technology initiatives that will help improve access to health-care services.

An investment of $20 million is intended to expand collaborative practices and improve access to primary health care, consistent with recommendations shared by doctors, nurses and other health-care professionals.

Other highlights include:

• $562,000 to expand midwifery services in Fredericton and add services in two other communities.
• $7.1 million to fund agreements with cataract surgical centres to provide cataract surgery services outside of hospitals.
• $7 million in additional funding for mental health and addictions services.
• $1.4 million to fund additional marketing and programs to attract and recruit domestic and international health-care professionals.
• Working to reduce nursing vacancies by offering an incentive program to fill “hard-to-recruit” positions.
• $2.9 million to support screening programs for colon cancer, lung cancer, HPV cervical cancer, and oncology drug funding.
• Expanding breast cancer screening to include women aged 40 to 49, benefiting more than 50,000 women.
• $2.1 million for additional resources to ensure appropriate care is provided to survivors of sexual or domestic violence.

Energizing the private sector

Steeves noted that, over the last five years, New Brunswick’s population has grown significantly – more than the previous 37 years combined.

The budget invests $3.4 million to help newcomers navigate various immigration streams and provide support such as language training and settlement assistance through non-profit agencies.

Further support will be provided to reduce certification barriers for internationally trained workers in regulated professions as they transition to work in their fields of expertise in New Brunswick.

The government’s clean energy transition supports its aim to reduce greenhouse gas emissions, transform how New Brunswickers consume energy, and support significant economic opportunity, said Steeves.

To support this, investments include:

• $50 million for the Enhanced Energy Savings Program to provide free heat pumps, air sealing and insulation for eligible recipients.
• $5 million to support energy conservation for people who use non-electric fuel types, First Nations, non-profit organizations, and low-income individuals and families.
• $12.5 million to navigate a complex regulatory approval process and ensure that clean non-emitting nuclear energy is generated safely.

Safe communities

With population growth comes increased demands on public safety services, said Steeves. To address these pressures, $6.6 million will be invested to address increased demands for driver testing and inspection and enforcement services, and to accommodate increased court caseloads and inmate population, along with $5.3 million to help make communities safer.

Additional investments in the province’s justice system are meant to improve access, reduce wait times and provide faster accountability.

Supporting vulnerable populations

“We know that, as costs have continued to rise, New Brunswickers are feeling more and more financial stress,” said Steeves. “Initiatives outlined in the budget, in addition to some of the other measures we have recently announced, will help alleviate some of those pressures people are experiencing.”

These initiatives include:

• An increase of 3.6 per cent for social assistance recipients under the Transitional Assistance Program and Extended Benefits Program.
• $29.7 million to increase wages for personal support workers in home support and special care homes, group homes, community residences, family support and attendant care.
• $2.2 million to increase the per diems in adult residential facilities.
• Making amendments to the New Brunswick Income Tax Act to provide additional support to low-income seniors, permanently increasing the base amount of the Low-Income Seniors’ Benefit to $600 from $400, with the value of the benefit indexed to the consumer price index annually.
• Providing a monthly household supplement for social assistance recipients and youth engagement services recipients that will benefit more than 33,000 residents, including more than 10,000 children.

Housing

The 2024-25 budget includes an increased investment of $68.9 million for the New Brunswick Housing Corporation; this is a 54.1 per cent increase over last year’s budget.

Investments in affordable housing include:

• $22 million for a direct-to-tenant rental benefit for families and seniors who are in core housing need for affordability reasons.
• $5.5 million through the Canada Housing Benefit to help an additional 1,200 New Brunswick households.
• $3.5 million through the Canada Housing Benefit to support survivors of gender-based violence.
• $3 million through the Rent Bank to reduce the risk of eviction due to arrears in rent or utility bills.
• $11 million in permanent funding to respond to the homelessness crisis.
• $2.5 million to support the development and repair of rental units.
• $2.6 million in support of a partnership with Habitat for Humanity.
• $20 million through the Regional Development Corporation to help small communities build or enhance existing infrastructure.
• $2.5 million through the Regional Development Corporation to support pre-construction work related to affordable housing.

Building a better education system

The government will increase funding through the Canada-New Brunswick Canada-Wide Child Care Agreement by $7.4 million, bringing the total investment to $150.7 million in 2024-25. This investment aims to improve access to affordable, high-quality designated child-care spaces.

Other investments include:

• $4.4 million to support children with autism spectrum disorder, providing the right supports at the right time and setting up children for success.
• $18.6 million to address challenges resulting from enrolment growth, as well as an additional $24.3 million to address rising operating costs such as energy, transportation and other services.
• $1.1 million to address costs associated with opening new schools in Fredericton and Moncton this September.
• $2.5 million to support language learning and ease the transition for immigrant students entering the New Brunswick education system.
• $7.4 million to provide services to help students attend school and address their diverse needs.
• $7.8 million to provide support to reverse the effects of instruction time lost during the pandemic.
• $4.1 million to begin implementing longer-term measures, such as teacher recruitment and retention, enhanced virtual learning and leadership development among school leaders.

Gender impact assessment

The government continues to apply a Gender-Based Analysis+ lens to measures outlined in the budget and lead the discussion by releasing the results of this analysis.

“I am proud of the leadership role our government has taken to make this publicly available as it helps inform the discussion and decision-making as part of the annual budget process,” said Steeves.

The 2024-25 budget speech and other relevant documents are available online.

19-03-24
Media Contact(s)

Alycia Bartlett, communications, Department of Finance and Treasury Board, alycia.bartlett@gnb.ca.

IBF5