2023-24 Provincial Budget has small wins but lacks bold action

March 21^st, 2023

MONCTON – The 2023-2024 New Brunswick budget includes some small victories for business but lacks the broad strokes needed to tackle the most serious issues affecting the province, according to the Chamber of Commerce for Greater Moncton (CCGM).

“This is a bit of a Groundhog Day budget,” said CCGM CEO John Wishart. “There are some nice spending increases on some programs but we don’t see in this document a broad strategy to tackle our labour force challenge, housing crisis, and rising homelessness.”

The Chamber was pleased to see some increased health care spending – including nearly $30 million more for health care personnel recruitment and retention – and talk of a new mental health and addictions program to tackle homelessness.

On the positive side, the PC government is predicting a $40 million surplus in the next fiscal year, although, after the third quarter fiscal update suggested this year’s surplus will be closer to $1 billion. Government continues to pay down the net debt and our net-debt-to GDP ratio is forecast to fall from 30 to 24.9 per cent next year, among the best in Canada.

The government is predicting modest economic growth of 0.8 per cent in 2023-2024 with high interest rates and inflation impacting finances. The Chamber was also pleased to see a personal income tax savings of $70 million for the next fiscal year.

The Chamber was pleased to see increased spending on law enforcement. The province will increase the number of frontline RCMP officers by 15 per cent next year and create two new teams – a Moncton Major Crimes Team and an Organized Crime Team.

Aside from an additional $3.2 million for creation of emergency shelters, there isn’t much in the budget to tackle homelessness. The document states government “is exploring the addition” of 50 inpatient beds for the highest acuity mental health and addiction cases. Health Department officials admitted that is a commitment to explore the idea, without a confirmation of funding. The Chamber has long advocated an in-patient facility is needed to get help to the most seriously ill.

The Chamber was also hoping for more substantial spending to address our housing crisis. The budget speaks at length about changes to the New Brunswick Housing Corporation and a new provincial housing strategy but there are no significant new spending initiatives.

“We know the province plans a housing summit and a new strategy by summer. We will put our faith in that process because the lack of housing at all price levels is a significant impediment to continued growth,” Wishart said.

The budget was also shy on workforce-related spending programs. The CCGM had identified workforce, housing, homelessness and creating a competitive business sector as their priorities in a pre-budget consultation session.

The Chamber will continue to monitor government spending as departmental estimates are released later this spring.

-30-