Nova Scotia has tabled a $16.5-billion budget that spends heavily on health care and contains a tax break touted as one of the largest in the province’s history.
With projected revenues of $15.8-billion, Finance Minister Allan MacMaster is forecasting a deficit of $467.4-million after an accounting adjustment.
The government’s big-ticket cost-of-living measure will see it index personal income tax brackets, the basic personal amount and non-refundable tax credits to inflation beginning Jan. 1, at a projected cost of $160-million a year by 2028.
When tax brackets are raised to reflect inflation, that can result in a taxpayer remaining in a lower bracket and paying less than they otherwise would have.
The province is spending $7.3 billion across its health system and notes that health spending has increased by 36 per cent in the past three years.
Other support measures include $84.6 million to address homelessness, $7.8 million for child poverty and $2.4 million to create 500 new rent supplements.
Here are this year’s budget highlights:
- The province is bringing in a $16.5-billion budget, with a projected deficit of $467.4 million.
- Health-care spending is expected to reach $7.3 billion, a 36 per cent increase over the past three years.
- As of Jan. 1, 2025, the province will index personal income tax brackets, the basic personal exemption and some tax credits to the province’s inflation rate.
- The Progressive Conservative government claims the tax changes will result in the largest tax break in the province’s history, estimating it will cost the treasury about $160 million annually by 2028.
- Almost $19 million is budgeted for a new lunch program for students in public schools.
- As the province faces a housing and homelessness crisis, the government is providing an additional $84.6 million for supportive housing and other related programs.
- About $102 million is budgeted for changes to the disability support program, resulting from a human rights case that found systemic discrimination in how housing and care is being provided.
This report by The Canadian Press was first published Feb. 29, 2024.
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