Borrowing Power Up to $3.1B

Summary#

Bill 48, Loan Act 2026, is a proposed new law; it does not amend the Provincial Loans Act. It would authorize the Lieutenant-Governor in Council to borrow up to $3.1 billion in total under section 4 of that Act, in addition to amounts authorized by other Acts. The stated purposes are to support the public service, deal with New Brunswick’s debts or obligations, reimburse the Consolidated Fund for related payments, and carry out public works authorized by the Legislature. The bill is at first reading, so it is not law and passage is uncertain.

  • The borrowing authority is a power, not a requirement to borrow the full amount.
  • The $3.1-billion limit applies to borrowing under this bill; the text says it is additional to amounts authorized under other Acts.
  • Borrowing may be for any or all of the listed purposes. Public works must already be authorized by the Legislature.

What it means for you#

  • Government: If the bill becomes law, the Lieutenant-Governor in Council could raise money under it for the listed purposes. The bill does not require the government to borrow a particular amount.
  • Taxpayers and the public: Borrowing used under this authority would create debt for the province to repay. The bill does not directly change taxes, fees, benefits, or public services.
  • Public works: This bill would not itself authorize particular projects. The Legislature must authorize the public works for which borrowing is used.

Money#

The bill authorizes up to $3.1 billion in borrowing, but no estimate of actual borrowing or its cost is in the available material.

  • No publicly available information is provided about expected borrowing, interest costs, or repayment terms.
  • The bill does not name projects or allocate specific amounts to particular purposes.

What is unclear#

  • How much, if any, of the $3.1 billion the government plans to borrow. No publicly available information.
  • What rules section 4 of the Provincial Loans Act sets for borrowing; that Act was not supplied, so those rules could not be verified.
  • When the borrowing authority would begin. The supplied bill text does not state a start date.
  • How borrowing under this Act would fit with the amounts authorized under other Acts.

Case for#

  • A possible argument for the bill is that it would give the government borrowing authority for public services, existing debts and obligations, and Legislature-approved public works.
  • The total borrowing under this Act would have a stated cap of $3.1 billion, rather than unlimited authority under this bill.
  • Allowing borrowing for any or all of the listed purposes could give the government flexibility to meet different financing needs.

Case against#

  • The bill permits borrowing for broad purposes and does not identify specific projects or set amounts for each purpose.
  • Borrowing could add to provincial debt if the authority is used. The bill does not state the expected amount, interest cost, or repayment schedule.
  • The $3.1-billion cap is additional to borrowing amounts authorized by other Acts, so it does not show the province’s total borrowing authority.