Finance Minister Cathy Rogers has offered response to comments from the Auditor General this week that question provincial deficits and increasing net debt..
Kim MacPherson says the net debt has increased almost $7 billion over the past ten years.
Minister Rogers says they take the Auditor General very seriously, but she believes the government is on the right track.
“Many of the announcements that we have been making all along, are really details that are coming out from the budget. So it’s not additional spending above and beyond the budget, it’s in accordance with the plan. When we invest, we are doing so, according to strategic and aligned plans. I think we have taken the balanced approach. We take the Auditor General seriously. She has been giving this message for many, many years, and we have reduced the deficit by over half. I think that is the first step to reducing the deficit.”
The auditor general cautioned that New Brunswick’s ability to reduce the net debt will be more challenging than other provinces given New Brunswick’s declining population, high unemployment rates and slow economic growth.
“I am concerned that future generations will need to pay for this excessive spending and that the province has no immediate plan to address the continuing fiscal decline. If this continues, eventually the government will not be able to provide the same level of programs and services such as health care, education, and roads,” MacPherson said..