New Brunswick needs to grow its economy

The New Brunswick budget shows that a series of tax increases and modest spending measures to tackle the province’s dire fiscal situation will not mean less provincial debt. Rather, debt will continue to grow under the fiscal plan unveiled Tuesday. To reverse course the province needs to adopt a strategy to grow its economy and jobs in the private sector.

The budget totalling nearly $9-billion in expenditures offers timid reductions in public expenditures. Some $45-million will be saved by reducing 1,300 jobs in the civil service. That’s a good start and the government should be commended for its willingness to reduce public sector jobs. No other province in the region has done as much. But the bulk of that work remains to be done. Overall, government spending will increase this year along with the tax burden and the province’s debt will jump to $13.5-billion in 2017. That is nearly $18,000 for each New Brunswick resident.

By some measures, New Brunswick’s situation is worse than elsewh…