FREDERICTON (GNB) – The provincial government tabled its audited financial statements today for the 2012-13 fiscal year.

“We see a consistent trend in both last year's audited results and the first quarter of this year,” said Finance Minister Blaine Higgs. “Managing smarter and restraining expenditures has resulted in overall departmental spending being under budget for the second year in a row. Unfortunately, revenues continue to fall short of what was expected.”

Spending growth over the last two years has averaged only 0.8 per cent per year compared to the 10-year average of 4.3 per cent.

The financial statements show the province incurred a deficit of $508 million in 2012-13 which is $97 million higher than was projected at the third quarter of 2012-13.

The change from what was budgeted is largely a result of provincial revenues being down $270 million in 2012-13 due to weaker-than-expected results and higher pension costs for NB Power and a tax revenue shortfall.

Overall expenses were limited to $55 million over budget because increased pension costs were mostly offset by lower departmental spending.

The first quarter projections for 2013-14, released on Sept. 27, show a deficit projection of $499 million.


16-10-13