The provincial government is now projecting that the surplus will reach $862.2 million this year — a record — and more than 24 times the original budget projection last March.

"Our economy has recovered much faster [from COVID-19] than expected and population growth has set new records," Finance Minister Ernie Steeves said in his third-quarter fiscal update.

"These factors have contributed significantly to the improved results for our tax revenues."

Steeves also announced the creation of a new "New Brunswick Advantage Savings Fund" that will see the province deposit $300 million of the surplus into an account. 

Interest generated from that account will be spent on programs, though Steeves had no specifics Wednesday on what that will be.

According to the update, revenues are now projected to be more than $1 billion higher than what Steeves set out in his 2022-23 budget last March.

Revenues are now projected to be more than $1 billion higher than what Steeves set out in his 2022-23 budget last March.

That includes $468.2 million more in corporate income tax than originally expected and $423 million more in personal income taxes than what Steeves projected.

What the government is spending on health care this year has barely changed, however, since the last budget update in November.

The record surplus will reduce the province's accumulated debt by $749.5 million, bringing it down to $11.6 billion.

The province recorded a surplus of $777.3 million last year, in 2021-22.