Nova Scotia deficit expected to hit $654 million

Nova Scotia’s deficit is expected to reach $654 million for the 2024-2025 fiscal year – a $186.6-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)

MacMaster noted a slowdown in population growth resulted in $70 million less in tax revenue.

"We are expecting this trend to continue and it is important we focus on retaining people and the skills that they bring to drive our economy and build Nova Scotia faster," MacMaster said.

Liberal finance critic Keith Irving said the government is not reacting to the easing population growth.

"In the last fiscal year, every department but one -- 17 out of 18 -- overspent in this budget," he said. "There are some really confounding choices in this budget."

NDP leader Claudia Chender noted housing spending has actually come in under budget.

"We know that one of the biggest things facing Nova Scotia is a lack of affordable housing," she said. "That is in (the government's) purview and they are not spending the housing budget."

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.

-With files from Jonathan MacInnis

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