HALIFAX - The Nova Scotia government took aim at rising student debt and delays in emergency health care in rural communities as it brought in its 2011-12 budget on Tuesday.
The $9.3-billion spending program includes a deficit of $389.6 million, slightly more than the $370 million that Finance Minister Graham Steele had recently forecast. Departmental spending is reduced by $170 million.
Steele said he is sticking to a plan to balance the province's books by 2013.
"Any faster and important public services like health and education would be threatened," Steele said in his budget speech. "The budget slashers say we're not moving fast enough and we say, 'So be it.' "
The government says the deficit, which comes on the heels of a $447-million surplus for 2010-11, is mainly caused by the province's decision to return to annual funding for universities, which have been allocated $327 million in the budget.
The government will spend $30 million on student bursaries and implement a maximum debt cap of $28,560, which means any money borrowed over that amount during a four-year degree program will be forgiven. The NDP is also continuing a tuition reduction of $1,283 for Nova Scotia students studying in the province.
"The cap is comparable to those in other jurisdictions and will be a powerful incentive to graduates to stay and build a life in Nova Scotia," said Steele.
The government says it will open at least four new collaborative emergency centres in rural areas this year in a bid to reduce overcrowding in hospital emergency rooms.
"These centres stream patients to special purpose areas to get appropriate care faster, matching services with the community's needs, 24 hours a day, seven days a week," said Steele.
"Lives are being saved because highly trained and skilled paramedics can administer life-saving drugs and procedures to their patients before they arrive at hospital."
Otherwise, the province is holding steady in major areas of expenditure including health care and education, with $3.7 billion spent on health and spending slightly reduced for education at $1.1 billion.
The budget indicates that government revenues have been steadied by income tax and HST revenue. Last July's two percentage point hike in the HST to 15 per cent resulted in $237 million for provincial coffers and this year, HST revenues are estimated to bring in $344 million.
On the tax front, the budget will increase the basic personal exemption by $250, meaning the amount people have to earn before paying taxes rises to $8,481 from $8,231.
As promised, there will be a half a percentage point drop in the small business tax rate to four per cent, a move that will cost the province nearly $6 million during the first full year of its implementation in 2012-13. It will mean about $4,000 in savings for small business owners.
Capital spending has not changed from a separate budget released last December and includes $560 million for roads, bridges, schools and health care facilities. Capital spending includes $83.6 million for renovations and for new schools in Bedford, Lunenburg and Yarmouth.
There is also $15 million included for the dredging of Sydney Harbour and $7.1 million to continue with restorations to the Bluenose II.
There are several new initiatives in the health sector, including $4.4 million to fund the degenerative eye drug Lucentis and $1.5 million to fund nurse practitioners throughout the system. Another $2.6 million will be spent to begin the replacement of the emergency room of the Aberdeen Hospital in New Glasgow.
