Nova Scotia registers $341.6-million deficit for last year, driven by COVID-19 costs
Nova Scotia's deficit for the 2020-21 fiscal year is $341.6 million -- a figure the province's finance minister says won't affect the new Tory government's election promise to spend significantly on health care.
Allan MacMaster closed the books for the previous fiscal year on Thursday, telling reporters that COVID-19 was the main reason for a $396.6-million drop from the $55-million surplus forecast in the budget tabled by the previous Liberal government in February 2020, just before the pandemic hit.
MacMaster said while there were extra expenditures because of the pandemic, the response by Nova Scotians in adhering to COVID-19 protocols and keeping virus numbers down actually helped lessen the overall impact to the economy.
"We could have had more extended lockdowns, which could have impacted our economy more greatly," he said. "Nova Scotians took care of themselves, and as a result the economy restarted more quickly than in some other jurisdictions."
MacMaster said the province responded with close to $940 million in pandemic-related operating and capital spending during the fiscal year that ended March 31, helped by $462.2 million in federal aid.
Total expenses increased by nearly $219 million to $12.63 billion because of increased support for health-care services during the pandemic and to support various sectors of the economy. As well, total revenues were down by $178 million because of lower tax revenue and federal transfer payments.
The Progressive Conservatives, who were elected to a majority government Aug. 17, campaigned almost solely on fixing the province's ailing health-care system.
The party pledged $430 million in spending for the sector during their first year in power for areas including a pension plan for doctors, the extension of operating room hours on weekdays and 2,500 more long-term care beds.
MacMaster said that plan won't change, based on what he's seen to date.
"We did say that we would deficit spend if necessary to fix health care, and we intend to do that," he said.
The minister said the government would also spend more if necessary to meet needs that arise as a result of the ongoing pandemic, despite a net debt that has grown to $16.4 billion from $15.2 billion since the end of March, 2020.
MacMaster said the rising debt won't effect the government's ability to operate as long as it sticks to the fiscal plan in its platform. He is expected to present an update on the current fiscal year by the end of this month.
Former Liberal finance minister Labi Kousoulis tabled the 2021-22 budget in late March. It projected a $585-million deficit caused by pandemic costs, including an estimated $350 million for such things as personal protective equipment and vaccination clinics around the province.
This report by The Canadian Press was first published Sept. 16, 2021.
CTVNews.ca Top Stories
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.