New Brunswick faces $7.4 billion debt

According to audited financial statements from the New Brunswick provincial government, the province is facing a $7.4 billion debt, which is an increase by $438.6 million.

The astronomical debt in the province is due to three areas: the deficit, capital spending and adjustment for NB Power Group due to declines in market values, according to CBC News. The Department of Finance has blamed the global economic downturn for the massive debt facing the province. "During the next few years, there are some very important and tough decisions that will need to be made by our government as we recover from the global economic slowdown. We look forward to discussing those issues with the public in pre-budget consultations early in October," stated Finance Minister Greg Byrne. The audit also shows that the government took in less revenues than expected, especially in the mining and corporate taxes. The Department of Finance did state, however, that all departments spent less money during the fiscal year of 2008-2009.