Article

2014-2015 New Brunswick budget highlights

Canadian tax alert

February 4, 2014

This afternoon, Finance Minister Blaine Higgs presented the New Brunswick government’s 2014-2015 budget, “Putting our Resources to Work”. The following is a summary of the tax highlights contained in the budget.

Economic results and indicators

  • 2013-2014
    • The 2013-2014 deficit is projected to be $564.1 million.
    • Government spending is projected to be under budget by $201.3 million.
    • Government revenues are projected to be under budget by $286.7 million.
    • Net debt is projected to increase by $607.2 million, an increase of $12.8 million from budget.
  • 2014-2015
    • The 2014-2015 deficit is projected to be $391.1 million.
    • Operating expense growth will be limited to 1.9%, an increase of $155.9 million over the revised 2013-2014 third quarter estimates.
    • Government revenues are expected to increase by 4.3% over the revised 2013-2014 estimates, and are expected to exceed $8.0 billion.
    • Net debt is projected to increase by $530.7 million, reaching approximately $12.2 billion by the end of 2014-2015.

Personal and corporate tax rates

  • After increasing both personal and corporate tax rates in its 2013-2014 budget, the government has not introduced any personal or corporate tax rate changes in the 2014-2015 budget.

Other tax measures

  • Effective for the 2014 taxation year, the Small Business Investor Tax Credit will be expanded to allow New Brunswick corporations and trusts to be eligible for a 15% non-refundable corporate income tax credit on eligible investments of up to $500,000. Previously, this credit was only available to individuals.
  • The Small Business Investor Tax Credit will be further enhanced to provide individual, corporate and trust investors with a 15% non-refundable income tax credit for investing in a registered community economic development fund.

Government spending

  • Reviews continue in various government departments to identify efficiencies in service delivery; these reviews are part of government’s Performance Excellence Process, now in its second year, which has seen savings of more than $12.0 million to date.
  • $223.3 million has been committed for repairs and maintenance of transportation infrastructure.
  • $99.4 million has been committed for K-12 school infrastructure.
  • $212.9 million has been committed for maintenance and improvement of health care infrastructure.

Contacts

Canadian Managing Partner, Tax
Heather Evans
416-601-6472

National Tax Policy Leader
Albert Baker
416-643-8753 

New Brunswick
Brian Brophy
Tax
709-758-5234

B. David Nielsen
Tax
506-663-6655

Clarence Mercer
Tax
506-663-6707

This publication is produced by Deloitte LLP as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors. Your use of this document is at your own risk.

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