Nova Scotia deficit expected to hit $654 million

Finance and Treasury Board Minister Allan MacMaster speaks to reporters before tabling the provincial budget at the Nova Scotia legislature in Halifax on February 29, 2024. (Source: THE CANADIAN PRESS/Darren Calabrese)

Nova Scotia’s deficit is expected to reach $654 million for the 2024-2025 fiscal year – a $187-million increase from the government’s projections in March.

Allan MacMaster, minister of Finance and Treasury Board, said the government originally expected a $467.4-million deficit when it tabled the budget earlier this year.

“We are closely managing the province’s finances, following through on the commitments we made in the budget and adapting to changing circumstances,” said MacMaster in a news release. “This past year, the government has made necessary investments to build more housing and fix health care while also dealing with cost pressures associated with infrastructure needs and support for people and businesses impacted by natural disasters.”

The province noted several additional appropriations – which are financial supports for institutions that exceed their budget spending authority – totalling $448,460,000 so far this year. Some of them are:

• $178,380,000 for health and wellness (including $111.1 million for Nova Scotia Health, $10.3 million for blood plasma and $28.1 million for a recent paramedic contract)
• $76,073,000 for capital purchase requirements (including $59.5 million for highway construction costs)
• $53,844,000 for Service Nova Scotia
• $31,737,000 for debt servicing costs
• $23,331,000 for Public Works (including $17.8 million for storm damage)

The province notes total revenue is projected to be $15.9 billion with an overall revenue increase of $10.2 million.

Expenses are up $242.7 million from the budget estimate, landing at $16.8 billion.

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