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

2014-2015 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

July 2014

Translation:

Translation Bureau, Government Services

ISBN 978-1-4605-0487-1

Think Recycling!

2014-2015 Fiscal Update

Based on first quarter information, there is a deficit of $387.3 million for 2014-2015. This is a decrease of $3.9 million compared to the budget deficit of $391.1 million.

Net debt is projected to increase $526.5 million year-over-year, a decrease of $4.2 million from the budget estimate of $530.7 million.

Revenues are $6.0 million higher than budget. The major variances include:

• Special Operating Agency revenue is up $15.9 million mostly due to the new Canada/New Brunswick Federal Gas Tax Fund.
• Conditional Grants are up $8.9 million mainly due to federal recoveries for Disaster Financial Assistance.
• Metallic Minerals Tax revenue is higher by $6.3 million due to a tax audit.
• Miscellaneous Revenue is up $5.3 million mainly due to an increase in recovery revenue for the Regional Health Authorities.
• Provincial Real Property Tax revenue is anticipated to be lower by $21.3 million due to changes in the assessment base in the previous year.
• Sales of Goods and Services is down $4.2 million mainly due to a decrease in revenue of $2.5 million for public housing, tuition fees and a decrease in hospital patient revenue.
• Return on Investment is down $2.9 million mainly due to lower than anticipated interest revenue on loans.

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2014-2015 Fiscal Update

Total expenses are projected to be $2.1 million higher than budget. The major variances include the following:

• General Government ($10.2 million under): Projected under-expenditure in Supplementary Funding due to central salaries and other centrally-managed funds.

·	Government Services ($4.0 million over):	of initiatives associated with
	shared services opportunities.

• Health ($23.2 million under): Mainly due to projected under-expenditures in pharmaceutical programs. This is partially offset by a projected over-expenditure in the Medicare program.
• Post-Secondary Education, Training and Labour ($4.5 million under): Mainly due to an under-expenditure in the Post-Secondary Affairs program that is offset by a corresponding over-expenditure in the New Brunswick Community College / Collège communautaire du Nouveau-Brunswick Special Operating Agency.
• Public Safety ($17.1 million over): Primarily due to Disaster Financial Assistance funding in relation to the spring 2014 flooding. This is mostly offset by additional federal revenue.
• Transportation and Infrastructure ($9.6 million over): Due to projected over- expenditures in a number of areas, particularly the Winter Maintenance and Maintenance programs.

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COMPARATIVE STATEMENT OF SURPLUS OR DEFICIT
Thousands
$
	Year Ending March 31
					Variance
	2015		2015		from
	Estimate		1st Quarter		Estimate
Revenue
Ordinary Account	7,677,344		7,669,392		(7,952	)
Capital Account	56,311		54,862		(1,449	)
Special Purpose Account	62,007		61,533		(474	)
Special Operating Agencies (net)	44,727		60,588		15,861
Sinking Fund Earnings	195,700		195,700		0
Total Revenue	8,036,089		8,042,075		5,986
Expense
Ordinary Account	7,894,060		7,885,328		(8,732	)
Capital Account	41,926		47,997		6,071
Special Purpose Account	69,656		69,789		133
Special Operating Agencies (net)	32,448		37,452		5,004
Amortization of Tangible Capital Assets	389,124		388,772		(352	)
Total Expense	8,427,214		8,429,338		2,124
Surplus (Deficit)	(391,125	)	(387,263	)	3,862

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COMPARATIVE STATEMENT OF ORDINARY ACCOUNT REVENUE BY SOURCE Thousands $

	Year Ending March 31
			Variance
	2015	2015	from
	Estimate	1st Quarter	Estimate
Taxes
Personal Income Tax	1,508,000	1,508,000	0
Corporate Income Tax	251,000	251,000	0
Metallic Minerals Tax	0	6,300	6,300
Provincial Real Property Tax	481,300	460,000	(21,300	)
Harmonized Sales Tax	1,146,500	1,146,500	0
Gasoline and Motive Fuels Tax	240,000	240,000	0
Tobacco Tax	150,700	150,700	0
Pari-Mutuel Tax	600	600	0
Insurance Premium Tax	47,205	47,505	300
Real Property Transfer Tax	13,000	12,000	(1,000	)
Large Corporation Capital Tax	0	0	0
Financial Corporation Capital Tax	27,000	27,000	0
Sub-total: Taxes	3,865,305	3,849,605	(15,700	)
Return on Investment	253,994	251,117	(2,877	)
Licences and Permits	138,843	138,639	(204	)
Sale of Goods and Services	291,607	287,444	(4,163	)
Lottery and Gaming Revenues	145,730	145,730	0
Royalties	94,255	95,155	900
Fines and Penalties	8,164	8,061	(103	)
Miscellaneous	48,315	53,655	5,340
TOTAL: OWN SOURCE REVENUE	4,846,213	4,829,406	(16,807	)
Unconditional Grants – Canada
Fiscal Equalization Payments	1,665,950	1,665,950	0
Canada Health Transfer	682,400	682,400	0
Canada Social Transfer	267,500	267,500	0
Wait Times Reduction Transfer	0	0	0
Other	1,866	1,866	0
Sub-total: Unconditional Grants – Canada	2,617,716	2,617,716	0
Conditional Grants – Canada	213,415	222,270	8,855
TOTAL: GRANTS FROM CANADA	2,831,131	2,839,986	8,855
TOTAL: GROSS ORDINARY REVENUE	7,677,344	7,669,392	(7,952	)

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COMPARATIVE STATEMENT OF ORDINARY ACCOUNT EXPENSE
	Thousands
	$
	Year Ending March 31
	2015		2015		Variance
DEPARTMENT	Estimate		1st Quarter		from Estimate
					$		%
Agriculture, Aquaculture and Fisheries	36,564		36,564		0		0.0	%
Economic Development	98,039		98,039		0		0.0	%
Education and Early Childhood Development	1,085,771		1,085,771		0		0.0	%
Efficiency New Brunswick	8,699		8,699		0		0.0	%
Energy and Mines	9,130		9,130		0		0.0	%
Environment and Local Government	136,903		136,853		(50	)	0.0	%
Executive Council Office	17,247		17,247		0		0.0	%
Finance	17,967		17,917		(50	)	-0.3	%
General Government	801,776		791,568		(10,208	)	-1.3	%
Government Services	54,961		59,010		4,049		7.4	%
Health	2,588,308		2,565,069		(23,239	)	-0.9	%
Healthy and Inclusive Communities	18,537		18,437		(100	)	-0.5	%
Human Resources	3,514		3,514		0		0.0	%
Invest NB	17,638		17,638		0		0.0	%
Justice	42,699		42,699		0		0.0	%
Legislative Assembly	30,001		30,001		0		0.0	%
Natural Resources	101,096		101,996		900		0.9	%
Office of the Attorney General	18,178		19,234		1,056		5.8	%
Office of the Premier	1,628		1,628		0		0.0	%
Post-Secondary Education, Training and Labour	593,812		589,314		(4,498	)	-0.8	%
Public Safety	145,468		162,568		17,100		11.8	%
Service of the Public Debt	685,000		685,000		0		0.0	%
Social Development	1,092,059		1,092,059		0		0.0	%
Tourism, Heritage and Culture	41,218		41,218		0		0.0	%
Transportation and Infrastructure	273,447		283,072		9,625		3.5	%
Subtotal	7,919,660		7,914,245		(5,415	)	-0.1	%
Tangible Capital Assets and Interaccount
Transactions	(25,600	)	(28,917	)	(3,317	)	13.0	%
ORDINARY ACCOUNT EXPENSE	7,894,060		7,885,328		(8,732	)	-0.1	%

ü	Projected under-expenditure
!	Projected over-expenditure
*	Offset by additional revenue

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COMPARATIVE STATEMENT OF CHANGE IN NET DEBT
Thousands
$
	Year Ending March 31
					Variance
	2015		2015		from
	Estimate		1st Quarter		Estimate
Surplus (Deficit)	(391,125	)	(387,263	)	3,862
Acquisition of Tangible Capital Assets	(528,705	)	(528,047	)	658
Amortization of Tangible Capital Assets	389,124		388,772		(352	)
(Increase) Decrease in Net Debt	(530,706	)	(526,538	)	4,168

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