The Nova Scotia government is forecasting a deficit of $247.5 million for the current fiscal year — an improvement of almost $220 million compared to what was estimated in last February’s budget.
In an update today, Finance Minister John Lohr says the deficit has been slashed because the government expects to collect $642 million more in revenue — for a total of $16.5 billion — in the 2024-25 fiscal year, mostly from provincial taxes.
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However, Lohr says revenue growth will be offset by an increase in expenses of $440.6 million from the budget estimate, mainly due to spending on health care and cost-of-living support programs.
As well, the federal government’s temporary suspension of the harmonized sales tax is expected to cost the province around $82 million.
Meanwhile, the government spent another $253 million on measures that weren’t included in February’s budget — meaning the spending wasn’t approved by the legislature — on such things as local film production grants and health labour contracts.
The budget update was the first presented by Lohr, who took over the finance portfolio when the Progressive Conservative government’s new cabinet was announced last week following the Nov. 26 provincial election.
This report by The Canadian Press was first published Dec. 20, 2024.
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