The New Brunswick government outlined in their 2009-2010 budget yesterday, and with it plans to cut 700 public service jobs as well as reducing personal and corporate income taxes. Unveiled by Finance Minister Victor Boudreau, the $7.8 billion budget will also increase stimulus spending, adding $800 million to the province's net debt load:

"The province will face significant deficits and increases in net debt as it confronts the challenges of one of the most significant global economic and financial crises in decades," Finance Minister Victor Boudreau told the legislature. "We are not alone."

He said Ontario and British Columbia have already projected deficits in the year ahead.

But Boudreau said he is confident his province can return to balanced budgets by 2012.

Unsurprisingly, opinions are mixed, with some welcoming the tax reforms and others concerned about the increased provincial deficit. Public sector unions have warned that less NB public jobs will negatively impact NB public services however they are not considering job action.

Some highlights regarding the changes in the public service:

• 700 union jobs in the public sector will be cut with more to come
• Effected programs include select small-claim courts, river ferries and tourism marketing
• Two year wage freezes for non-unionized and unionized workers

Some highlights regarding the tax changes:

• Personal income tax brackets reduced from four to two by 2012
• Corporate taxes reduced from 13% to 8% by 2012
• Small businesses redefined as $500,000 revenue or less effective immediately

The full budget details are available in PDF on the Government of New Brunswick website.