New Brunswick’s Liberals are now projecting a nearly $399-million deficit this fiscal year.

That is compared to a $41-million surplus budgeted by the previous Progressive Conservatives.

Finance Minister René Legacy said several factors negatively influenced the most recent quarter,

“We know there are difficult decisions ahead, considering the results we have seen over the last two quarters,” Legacy said in a news release.

“We remain committed to being fiscally responsible and are determined to help New Brunswickers navigate the very real struggle they face during these challenging financial times.”

Total expenses this fiscal year now are projected to be over budget by more than $409 million.

Officials said the most significant factors included higher costs in the regional health authorities, with a significant portion attributed to travel nurses.

There is also increased demand for services in income security and more complex cases in child welfare and youth services.

The government also cited its commitments on nurse retention payments and the electricity rebate.

Meanwhile, total revenue is projected to be $30 million lower than budget, which is due in part to the federal GST/HST break.

More to come.