Nova Scotia to spend $1.6 billion on hospitals, schools and roads in 2024-25

HALIFAX -

Capital spending in Nova Scotia remains at a record level, although provincial Finance Minister Allan MacMaster says he doesn't envision the government's funding allocation growing larger in the future.

The Progressive Conservative government said Wednesday that it will spend just over $1.6 billion on hospital, school and road projects in the coming fiscal year.

The overall figure for 2024-25 is $8 million more than the record capital plan tabled for the current fiscal year, which ends March 31. In 2022-23 the Tories budgeted $1.5 billion, which at the time was the largest capital plan in the province's history.

"We have a large capital budget because we are trying to build the infrastructure we need for a province that's growing," MacMaster told reporters.

However, he noted that economic factors such as labour and material supply shortages mean projects can't be completed as quickly as hoped. When asked whether that meant the government would spend more if it could, MacMaster replied with an emphatic "No."

During the upcoming fiscal year MacMaster said the health sector would get the largest portion of the funding at $593 million, including $301.7 million for the province's two biggest hospital projects in Halifax and the Cape Breton Regional Municipality.

Finance officials did not specify the funding for each project, but did say money allocated for the expansion of the Halifax Infirmary was for early work and design. The government has said construction expected to begin last summer has been on hold to allow for more design work to be done.

The capital plan also includes $483.3 million for highway and road projects, while $208.5 million will go to build and renovate schools, with four new schools expected to open in 2024.

MacMaster said $15.5 million has been allocated to help with preliminary work on 222 new public housing units that were announced with the federal government in September, while $11.8 million will be used to build modular housing.

Meanwhile, $20 million will go toward ongoing repairs of roads and bridges damaged by severe rain and flooding in July.

Liberal deputy leader Kelly Regan lamented the lack of money for construction for the Halifax Infirmary, which is part of a larger multibillion-dollar redevelopment of the QE II Health Sciences complex first announced by the former Liberal government in 2016.

"The cost just continues to go up and it's just going to get more and more expensive as they delay," said Regan.

NDP finance critic Lisa Lachance said the plan doesn't include enough money for affordable housing.

MacMaster said he will be tabling the 2024-25 provincial budget on Feb. 29.

This report by The Canadian Press was first published Feb. 14, 2024.

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