In the Media

AIMS Director of Research and Programmes Ben Eisen discusses the Institute's new paper on New Brunswick's provincial debt on CTV Atlantic

More needs to be done to rein in public spending in New Brunswick, concludes a new report on the province's debt and deficit that raising the possibility of rural hospital closures and school consolidations as ways to save money. The policy paper by the Atlantic Institute of Market Studies states the provincial government "has not adjusted to the reality of declining revenues and spending now significantly exceeds revenue, resulting in large deficits and growing debt."

Une voix de plus s’ajoute à la chorale qui demande au gouvernement provincial d’en faire plus pour équilibrer son budget. Cette fois, c’est au tour de l’Institut atlantique d’études de marché de s’impliquer dans le débat en proposant d’envisager la fermeture d’écoles et d’hôpitaux. L’Institut a publié mardi un rapport sur l’histoire des finances publiques néo-brunswickoises, écrit par l’un de ses analystes, Shaun Fantauzzo, et par le professeur d’économie à l’Université du Nouveau-Brunswick, David Murrell. Dans ce rapport, ils soulignent les efforts du gouvernement, mais affirment qu’ils sont insuffisants. Ils suggèrent notamment au gouvernement de réduire sa taille, comme il l’a fait en 2011 en abolissant le Conseil consultatif sur la condition de la femme.

Just as the coming election season will no doubt serve as a springboard for more potentially costly political pledges, a new study from the Atlantic Institute for Market Studies has highlighted how New Brunswick has little fiscal room left to maneuver. The study, prepared by University of New Brunswick economist David Murrell and AIMS policy analyst Shaun Fantauzzo, argues that because of expected declines in federal transfer payments over the near term New Brunswick must quickly adjust its expenditures in order to better reflect an era of diminished revenue. The numbers coming out of the report are certainly a sober read for any politician who may be tempted to promise grandiose pledges in a few short months.According to AIMS,the provincial debt is equivalent to 37.7 per cent of New Brunswick’s GDP. On a per-capita basis, every single New Brunswick resident is burdened by more than $16,000 in provincial government debt.

With a provincial election looming and the New Brunswick legislature about to adjourn, Premier David Alward is in the hot seat over his party’s spending habits. The Atlantic Institute for Market Studies says that while New Brunswick has taken steps to curb spending, it still needs to tackle its massive and ballooning debt. A new study from the Institute suggests the government isn’t working hard enough to reduce the deficit and trim what will soon be more than $12 billion in debt. The study’s co-author, David Murrell, says with Ontario and Quebec now receiving equalization payments from Ontario, reducing debt in a small province like New Brunswick is critical.