March 17, 2026 – René Legacy, Minister of Finance and Treasury Board, tabled New Brunswick’s 2026-27 provincial budget, forecasting a total expense of $15.63 billion. While the budget acknowledges global economic uncertainty, ongoing trade pressures, and a shifting economic reality with a forecasted real GDP growth of 1.0% in 2026, it prioritizes investments in essential public services. Health care is the primary focus of this budget, alongside initiatives targeting affordability, housing, and education. Despite these investments, the government aims to manage public finances responsibly and projects a deficit of $1.39 billion for 2026-27. To ensure long-term fiscal sustainability, the government is also implementing specific expenditure reductions and targeted revenue measures.
Fiscal Highlights
- Economic Outlook and Deficit: The budget forecasts a total expense of $15.63 billion and acknowledges a shifting economic reality with a forecasted real GDP growth of 1.0% in 2026. The government projects a deficit of $1.39 billion for the 2026-27 fiscal year.
- Health Care Budget Totals $4.8 Billion: NB increased health care funding by $710 million in Budget 2026-27, a 17.4% increase from the previous year. Despite being a significant increase, NB’s total health spending as a percentage of the whole budget is at 31%, which is significantly lower than most other Canadian provinces, which fall between 35 and 41%.
- Expenditure Reductions: A planned 12% reduction in the Part 1 civil service over three years, targeting $100 million in savings.
- Targeted Revenues: Introduction of tolls for non-New Brunswick vehicles (operational by 2028), projected to generate $10.4 million annually for infrastructure.
Health Care Highlights
Primary Care & Collaborative Team-Based Model Transformation
Primary care is a top-line priority for the province. NB’s health plan states that 23% of people in New Brunswick are not attached to a primary care provider. The province’s commitment to expanding the collaborative care clinic model and new Physicians Services Agreement are highlighted as the two primary actions they are taking to address this problem. Key investments include:
- Physician Compensation Reform: $170.4 million allocated to the new Agreement to implement compensation models that reward doctors for increasing patient attachment and actively participating in team-based environments.
- Clinical Infrastructure: $30 million designated to expand the collaborative care clinic model, facilitating the opening of 12 new clinics this year.
- Digital Modernization: The government is committing $50 million to digitize the health care system, focusing on the ongoing implementation of the “One Patient, One Record” clinical information system (CIS). As part of the new Physicians Services Agreement, the province is also increasing its electronic medical records funding budget to $1.75 million to allow every physician to access funds to adopt an EMR of their choice.
- Workforce Development: $5.4 million to be invested in medical education and the international recruitment of nurses and medical graduates to ensure sustainable future staffing.
Other Health Care Investments
- Mental Health and Addiction: The budget includes a $3.5 million investment for a 50−bed residential facility on the Kingston Peninsula, doubling the province’s adult live−in addiction treatment capacity. Additionally, $2.9 million will advance the Alzheimer’s and dementia strategy.
- Seniors and Continuing Care: To help seniors age in place, the budget provides $10 million to improve homecare affordability and $4 million to expand the Nursing Home Without Walls program. Residential care will see a $29 million boost to fund previously committed long−term care spaces, $2.6 million to increase direct hours of care in nursing homes, and $9.3 million to increase wages for personal support workers (PSWs)
- Emergency and Preventative Care: $2.5 million is allocated to equip paramedics with life−saving thrombolytics (clot−busting medications) for heart attack and stroke patients. $5 million to expand early detection and screening programs, including the introduction of at-home Pap screening.