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Nova Scotia budget has $1.2-billion deficit, cuts to public service

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Nova Scotia’s finance minister has tabled a budget with a $1.2-billion deficit and cuts to the public service.

John Lohr projects that the deficit for the 2026-27 fiscal year will be slightly smaller than the $1.25-billion deficit the province will end the current fiscal year with.

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The budget says the province’s population growth is expected to slow considerably over the next two years, but the government projects that its economic growth should be relatively stable.

Real GDP growth in 2026 is projected to be 1.5 per cent, down from 1.8 per cent in 2025.

Lohr’s $18.9-billion budget makes fives per cent cuts to the civil service every year for four years, and three per cent cuts over the same period for the broader public service including in health care and education.

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Nova Scotia’s net debt is forecast to grow by $5.5 billion in the 2026-27 fiscal year, for a total of $27.9 billion.

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