FREDERICTON — New Brunswick’s finances have slipped further into the red, with the government now projecting a deficit of $1.33 billion.

Finance Minister René Legacy released the province’s third-quarter fiscal update today showing the projected deficit is up almost $800 million from the $549-million deficit in the spring budget.

The province is expecting $372.1 million less in revenue, including from reductions in corporate and personal income tax along with less money from harmonized sales tax.

Expenses are expected to increase by $407.3 million, mostly in health care and social development.

Legacy said in a statement that this isn’t where the province wanted its finances, but there’s still room for investments in priority areas like health care and education.

Premier Susan Holt warned in her state of the province address last month that cuts to government spending are likely on the way.

This report by The Canadian Press was first published on Feb. 17, 2026.

The Canadian Press