The Government of New Brunswick has promised to cut provincial income taxes to help offset the impact of rising gas prices.
The provincial government made the promise when tabling an $11.3 billion budget. The latest budget document shows that the New Brunswick government has paid down its net debt by nearly a billion dollars over the last four years.
While the government is projecting a surplus of $35 million for the 2022-23 fiscal year, that's small compared to the $488 million surplus for the current fiscal year that ends on March 31.
Net debt will increase over the next year by $15.4 million to $12.99 billion, which represents $16,332 for every New Brunswick resident. However, the province's debt-to-GDP ratio, which is seen as an indicator of a government's ability to pay off its debt, is expected to be 30.1% and continue to drop over the next two years.
In keeping with federally mandated carbon-pricing requirements, effective April 1, 2022, the province's carbon tax will increase from the equivalent of $40 per tonne to $50 per tonne. That represents an increase of 2.21 cents per litre on gasoline and 2.68 cents per litre on diesel.
In response, the provincial government is promising income tax cuts. Specifically, the government says the province's basic personal amount will be increased from $10,817 to $11,720 and the low-income tax reduction threshold from $18,268 to $19,177, effective for the 2022 taxation year.
Provincial property tax rate cuts that were promised two years ago but postponed because of the financial impact of the pandemic will now be phased in over the next three years, including a 50% reduction for residential properties that aren't occupied by the owner, such as apartment buildings and other rental properties.
New Brunswick’s healthcare budget for 2022-23 has been set at $3.2 billion, an increase of 6.4%.
