Cathy Rogers 'thrilled' with federal budget that may drive up N.B. spending

The 2017-18 federal budget unveiled Wednesday could lead to more spending by the Gallant government in New Brunswick.

The federal spending plan contains programs that could help Premier Brian Gallant achieve some of his goals, but may also throw off his spending plan.

Gallant has promised to create 6,000 daycare spaces over five years, but as of last November there were just more than 2,000 new spaces that had been created.

The Trudeau government's new federal budget promises to create 40,000 new daycare spaces nationally, which may help Gallant hit his goal.

Priorities align

New Brunswick Finance Minister Cathy Rogers said Wednesday evening she had only had a chance to review highlights of the budget, but was "thrilled with what I see so far."

"I see that the federal government's priorities line up very well with New Brunswick's priorities," said Rogers.

Rogers cited federal investments in skills development, innovation, temporary foreign workers, and assistance to families for child care as some of the federal initiatives the Gallant government is also targeting.

"I'm thrilled because these perfectly line up with what our priorities are, too."

• Budget 2017: Liberals spend on training and innovation while holding line on taxes
• Federal budget 2017: Highlights of Bill Morneau's 2nd budget

May be forced to spend more

However, the Gallant government may be also forced to spend more because of the federal budget.

This year, the provincial had to increase its capital budget by $31 million to match infrastructure money Ottawa put up last year.

Something similar could happen this year, as the Trudeau Liberals introduced a new $11.2 billion national affordable housing plan that will require matching provincial dollars.

Joel Richardson of the Canadian Manufacturers and Exporters Association in New Brunswick felt the budget "is a very positive budget for New Brunswick."

Richardson pointed to budget initiatives to foster innovation, develop skills and encourage startup businesses.

"A focus on innovation and skills could serve New Brunswick very, very well," Richardson said on CBC News New Brunswick.

"We are a very resource-dependent economy. We focus heavily on traditional industries and we really do need significant investments in innovation and and advanced manufacturing to lift our economy and take it to the next level."