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
- 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.
- 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.
- 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.
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