New Brunswick Finance Minister Ernie Steeves tabled a $1.2 billion capital budget Tuesday, $200 million larger than the previous year's.
Steeves says the large figure represents continued cost pressures caused by inflation and labour shortages.
“This increase reflects the elevated inflationary environment, supply chain pressures seen in recent years, and is in response to the needs of a growing province,” he said in his speech on Tuesday at the N.B. legislature.
The budget reflects the province's growing population with $187.4 million set aside for capital upgrades, design and construction of schools. That nearly a 50 per cent increase in what was expected in previous five-year projections.
Steeves noted in his speech that the province's schools have welcomed 7,200 new students since 2021 and expects the school population to grow by another 6,000 by 2027.
“This means we must respond to the increased demand for space in our schools and continue to build on the progress we have made in recent years,” Steeves said.
Most of the money is set aside for eight schools already under construction, but the budget will also spend $10.2 million on six new schools including ones in Fredericton, Moncton, Dieppe, Salisbury and Tabusintac.
The province will also spend $33 million to break ground on new public housing units, as it looks to fulfill a previous promise to build 380 new units by 2026. Additional money will go to fixing existing public housing stock.
Nearly $200 million will be spent on healthcare infrastructure, headlined by a three storey addition at the Dr. Everrett Chalmers Hospital in Fredericton and a five storey additonal at the Chaleur Regional Hospital in Bathurst.
As always maintenance of the province's public highways and other car infrastructure will get the largest share of funding with $505 million. That's an 11 per cent increase over last year's projections due to cost pressures associated with inflation and supply-chain issues.
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