More spending on schools and roads but with higher tax levels

Finance Minister Victor Boudreau, left, and deputy minister John Mallory, talk with media prior to the release of the 2007-2008 budget.

The first budget by the fledgling Liberal government promises a $36 million surplus, more money for education and transportation, but higher personal and business taxes.

The government calls this "a transactional budget" to set the stage for the rollout of their broader agenda, while the Conversatives say the budget's heavier taxes will hurt job creation.

Photo: Courtesy Service New Brunswick