Province Of New Brunswick 18-K/A Annual report (foreign governments) (amended)

EXHIBIT 99.9

2013-2014 First Quarter Report

Published by:

Department of Finance

Government of New Brunswick

P.O. Box 6000

Fredericton, New Brunswick

E3B 5H1

Canada

Internet: www.gnb.ca/finance

September 2013

Translation:

Translation Bureau, Government Services

ISBN 978-1-55396-368-4

Think Recycling!

2013 Economic Update
						●         The IMF revised their forecast downward from their April outlook of 3.3 per cent, with global growth in 2013 expected to remain at the 2012 level of 3.1 per cent. ●         Factors influencing global growth include weaker domestic demand and slower growth in several key emerging market economies, as well as a more protracted recession in the euro area. ●         Real GDP in the U.S. increased by an annual rate of 1.7 per cent in the second quarter, following a 1.1 per cent growth rate in the first quarter. ●         The Bank of Canada is now projecting real GDP growth of 1.8 per cent in 2013, up from earlier expectations, as external demand increases and business confidence strengthens. ●         Many private sector forecasters have lowered their growth expectations for New Brunswick and are now modestly above the Department of Finance forecast of 0.5 per cent real GDP growth for 2013. ●         Employment declined by 2,500 in the first six months of the year, with gains in the goods-producing sector limiting a decline in the service sector. ●         Wages and salaries grew by less than 1.0 per cent year-to-date and trailed the national growth rate. Consumer spending is beginning to show signs of recovery with five consecutive monthly increases in retail sales; moreover sales in May were at their highest level in sixteen months. ●         Led by a healthy start to the year – particularly in wood products – manufacturing sales have shown a modest improvement (+1.4%) over 2012 levels. ●         Housing starts in the provinces urban centres are down 13.0 per cent over year-earlier levels. Single family construction slowed during the first half of the year in the provinces large urban centres, while multi-unit construction showed a modest improvement. ●         Consumer price inflation in the province has averaged 0.5 per cent, slightly lower than the national growth rate of 0.8 per cent.
New Brunswick Economic Indicators
	2011		2012		2013F
Real GDP		0.0		-0.6	0.5
Wages and Salaries		3.9		1.6	2.0
Employment		-1.2		-0.2	0.0
Unemployment Rate (%)		9.5		10.2	10.5
Consumer Price Index		3.5		1.7	1.2
Source: Statistics Canada
% chg unless otherwise indicated

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2013-2014 Fiscal Update

Based on first quarter information, there is a deficit of $499.9 million for 2013-2014. This is an increase of $21.2 million compared to the budget deficit of $478.7 million.

Net  debt  is  projected  to  increase  $619.2  million  year-over-year,  an  increase  of $24.7 million from the budget estimate of $594.4 million.

Revenues are $41.4 million lower than budget mainly due to weaker-than-anticipated results for NB Power and reduced Special Operating Agency Account Revenue. The major variances include:

● Return on Investment is down $32.4 million mainly due to lower net income of $30.0 million for the New Brunswick Electric Finance Corporation due to weaker- than-anticipated results for NB Power. This is due to increased costs for fuel, pensions and purchased power.

● Sale of Goods and Services is down $16.0 million from budget which is mainly offset by an increase of $13.6 million in Miscellaneous Revenue. This is due to a realignment of revenue for the Regional Health Authorities.

● Special Operating Agency Account Revenue (net) is down $4.4 million mainly due to lower expenses related to federal agreements.

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2013-2014 Fiscal Update

Total  expenses  are  projected  to  be  $20.2  million  lower  than  budget.  The  major variances include the following:

● General Government ($7.7 million under): Various miscellaneous under- expenditures, including lower than budgeted centrally managed funds and Consolidated Entity expenses.

● Justice and Attorney General ($3 million under): Mainly due to the transfer of certain functions to the new Financial and Consumer Services Commission.

● Post-Secondary Education, Training and Labour ($9.9 million under): Primarily due to projected under-expenditures in the Student Financial Assistance program due to lower interest rates and provision for loss savings, as well as the Labour Market Development program due to lower than expected uptake for employment programs.

● Transportation and Infrastructure ($2.3 million over): Mainly due to higher than budgeted expenses for Ferry Operations.

● Other accounts ($2.0 million under): Lower than budgeted expenses in the Regional Development Corporation Special Operating Agency due to some projects that were budgeted in 2013-14 occurring in the previous fiscal year. This was partially offset by higher than budgeted capital account expenses in the Department of Transportation and Infrastructure.

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COMPARATIVE STATEMENT OF SURPLUS OR DEFICIT

Thousands

$

	Year Ending March 31
	2014			2014			Variance from
	Estimate			1st Quarter			Estimate
Revenue
Ordinary Account		7,565,600			7,528,118			(37,482	)
Capital Account		81,044			82,068			1,024
Special Purpose Account		61,658			61,094			(564	)
Special Operating Agency Account (net)		79,133			74,722			(4,411	)
Sinking Fund Earnings		206,500			206,500			0
Total Revenue		7,993,935			7,952,502			(41,433	)
Expense
Ordinary Account		7,930,758			7,913,062			(17,696	)
Capital Account		44,689			47,895			3,206
Special Purpose Account		72,462			72,522			60
Special Operating Agency Account (net)		69,199			63,146			(6,053	)
Amortization of Tangible Capital Assets		355,520			355,760			240
Total Expense		8,472,628			8,452,385			(20,243	)
Surplus (Deficit)		(478,693	)		(499,883	)		(21,190	)

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COMPARATIVE STATEMENT OF ORDINARY ACCOUNT REVENUE BY SOURCE

Thousands

$

	Year Ending March 31
	2014		2014		Variance from
	Estimate		1st Quarter		Estimate
Taxes
Personal Income Tax		1,416,000		1,416,000		0
Corporate Income Tax		236,400		236,400		0
Metallic Minerals Tax		2,000		0		(2,000	)
Provincial Real Property Tax		481,500		481,500		0
Harmonized Sales Tax		1,159,800		1,159,800		0
Gasoline and Motive Fuels Tax		243,000		243,000		0
Tobacco Tax		157,000		157,000		0
Pari-Mutuel Tax		600		600		0
Insurance Premium Tax		47,205		47,205		0
Real Property Transfer Tax		11,500		11,500		0
Large Corporation Capital Tax		0		0		0
Financial Corporation Capital Tax		28,000		30,000		2,000
Sub-total: Taxes		3,783,005		3,783,005		0
Return on Investment		326,840		294,483		(32,357	)
Licences and Permits		138,267		137,756		(511	)
Sale of Goods and Services		293,867		277,854		(16,013	)
Lottery and Gaming Revenues		153,347		153,347		0
Royalties		110,855		110,855		0
Fines and Penalties		8,294		8,294		0
Miscellaneous		36,959		50,558		13,599
TOTAL: OWN SOURCE REVENUE		4,851,434		4,816,152		(35,282	)
Unconditional Grants – Canada		1,562,000		1,562,000		0
Fiscal Equalization Payments
Canada Health Transfer		664,000		664,000		0
Canada Social Transfer		262,300		262,300		0
Wait Times Reduction Transfer		5,368		5,368		0
Other		1,866		1,866		0
Sub-total: Unconditional Grants – Canada		2,495,534		2,495,534		0
Conditional Grants – Canada		218,632		216,432		(2,200	)
TOTAL: GRANTS FROM CANADA		2,714,166		2,711,966		(2,200	)
TOTAL: GROSS ORDINARY REVENUE		7,565,600		7,528,118		(37,482	)

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COMPARATIVE STATEMENT OF ORDINARY ACCOUNT EXPENSE

Thousands

$

	Year Ending March 31
	2014		2014		Variance
DEPARTMENT	Estimate		1st Quarter		from Estimate
					$			%
Agriculture, Aquaculture and Fisheries		39,882		39,882		0			0.0	%
Economic Development		101,373		101,373		0			0.0	%
Education and Early Childhood Development		1,074,592		1,074,592		0			0.0	%
Efficiency New Brunswick		11,649		11,649		0			0.0	%
Energy and Mines		8,061		8,061		0			0.0	%
Environment and Local Government		139,497		139,497		0			0.0	%
Executive Council Office		18,370		18,260		(110	)		-0.6	%	ü
Finance		18,949		18,949		0			0.0	%
General Government		862,873		855,175		(7,698	)		-0.9	%	ü
Government Services		59,597		59,597		0			0.0	%
Health		2,583,815		2,583,815		0			0.0	%
Healthy and Inclusive Communities		17,301		17,251		(50	)		-0.3	%	ü
Human Resources		3,973		3,973		0			0.0	%
Invest NB		14,638		14,638		0			0.0	%
Justice and Attorney General		62,700		59,718		(2,982	)		-4.8	%	ü
Legislative Assembly		21,659		21,659		0			0.0	%
Natural Resources		101,593		101,993		400			0.4	%	!
Office of the Premier		1,652		1,652		0			0.0	%
Post-Secondary Education, Training and Labour		604,341		594,488		(9,853	)		-1.6	%	ü
Public Safety		147,581		147,581		0			0.0	%
Service of the Public Debt		664,000		664,000		0			0.0	%
Social Development		1,062,734		1,062,734		0			0.0	%
Tourism, Heritage and Culture		37,632		37,924		292			0.8	%	!
Transportation and Infrastructure		272,296		274,601		2,305			0.8	%	!
TOTAL		7,930,758		7,913,062		(17,696	)		-0.2	%

ü Projected under-expenditure

!   Projected over-expenditure

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COMPARATIVE STATEMENT OF CHANGE IN NET DEBT

Thousands

$

	Year Ending March 31
							Variance
	2014			2014			from
	Estimate			1st  Quarter			Estimate
Surplus (Deficit)		(478,693	)		(499,883	)		(21,190	)
Acquisition of Tangible Capital Assets		(421,374	)		(421,930	)		(556	)
Amortization of Tangible Capital Assets		355,520			355,760			240
Deferred Revenue Related to Tangible Capital Assets		(49,894	)		(53,110	)		(3,216	)
(Increase) Decrease in Net Debt		(594,441	)		(619,163	)		(24,722	)

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