Nova Scotia’s finance minister has tabled a budget with a $1.2-billion deficit and warns that difficult decisions will need to be made to balance the books, which has opposition leaders wondering how the province will weather the next few years, financially.
The 2026-27 budget, which is titled “Defending Nova Scotia,” includes revenues of just over $17 billion and expenses of $18.9 billion.
Finance Minister John Lohr says the province is focused on protecting core services for Nova Scotians, including $6.7 billion in health spending, which accounts for 35.5 per cent of the overall budget.
“I think that the reality is that we continue to focus on health care. We need to continue to focus on health care and we are convinced that this will pay dividends in the future,” he told reporters Monday.
In order to contain expenses, the budget include a five-per cent yearly cut in the civil service and a three-per cent cut in public service and Crown corporations — all of which is projected to save $95 million. Lohr said government had to make “some tough decisions” and they started by “looking inward.”
“We will work to ensure that core front-line services are protected and focused. Those reductions on management and administration, and we will manage through retirements and attrition as much as possible,” he said.
Some cuts have already started as the government announced last week it was closing three provincial museums as well as several tourist information centres.
As well, the province will be reducing grants to organizations to the tune of $130.4 million.
- As Carney heads to India, Canada seeks to revoke citizenship of 2008 Mumbai attack ‘mastermind’
- What to know if you’re stuck or have an upcoming flight to Puerto Vallarta
- What’s a Canadian firm under defence industrial strategy? It’s complicated
- Kendamil baby formula sold at Costco recalled due to toxin concerns
“These are difficult decisions. We did not make them lightly. I know this will have a major impact on some organizations, and that will be hard. But these are decisions we had to make in order to protect the core services Nova Scotians rely on.”
Get breaking National news
But opposition leaders argue government’s decisions are harming Nova Scotians.
“What we see are cuts across the board and increases in ministerial and political budgets to help them manage this storm. This is completely unacceptable,” said NDP Leader Claudia Chender
“Across the sectors that are most valuable to Nova Scotians are traditional industries, our arts and culture, our science, our management. We see massive cuts and no explanation of where we will get back to balance.”
She went on to say that Houston’s PC government inherited a balanced budget and an “unprecedented amount of revenue” in their five years in power, but alleges that the money has been “squandered.”
“What we see today, five years later, is not many results. We don’t see an improvement to people’s cost of living. Power bills cost $400 more a month for the average family. Housing is out of control. And yet, we’re told that Nova Scotians need to sacrifice,” she said.
“We are going to see job losses. We’re going to be seeing significant losses to community programs … Nova Scotians do not deserve to pay for the mistakes that this government has made.”
Interim Liberal Leader Iain Rankin said the cuts in the budget will have ramifications.
“You can’t cut 20 per cent of the government and expect no impacts to services,” he said.
“It’s not waste that they’re cutting here. These are Nova Scotians working on important policy and it will impact services undoubtedly.”
Rankin went on to say government has backed themselves into a corner despite the fact the economy is growing.
“They’re reducing the public service and they are reducing services, ultimately.”
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.
Nova Scotia’s net debt is forecast to be $27.9 billion at the end of the 2026-27 fiscal year, and the province’s net debt-to-GDP ratio is expected to be 39.4 per cent.
Budget highlights
— Total spending is forecast to be $18.9 billion, with a projected deficit of $1.19 billion.
— The budget includes a four-year plan to contain expenses, including a five per cent yearly cut in the civil service and a three per cent cut in the broader public service, including Crown corporations. The government says the cuts will save about $95 million.
— The province intends to reduce grants to organizations by $130.4 million in an effort to rein in spending.
— Health spending rises to more than $6.7 billion, which accounts for 35.5 per cent of the overall budget.
— A total of $1.2 billion in capital investment for the Halifax Infirmary expansion project and Cape Breton Regional Municipality health-care redevelopment project.
— $144.5 million for construction and renewal of other hospitals and medical facilities in Amherst, Yarmouth, Bridgewater and the IWK in Halifax.
— $47.5 million to hire more paramedics and emergency medical responders, and $47.1 million to pay family doctors who take on shifts in long-term care, hospitals and emergency departments in rural facilities.
— $681.2 million toward a number of measures including keeping tax brackets indexed; increasing basic personal and age amounts; maintaining HST at 14 per cent; and continuing the energy rebate program. The government says these measures will save an average Nova Scotian family more than $1,400 in 2026-27.
— $873.8 million toward the plan to build 5,700 new and replacement long-term care spaces by 2032, with seven more facilities expected to open this year.
— Net debt is expected to be $27.9 billion in 2026-27, which reflects capital investments in the coming year and the anticipated budget deficit.
— with files from The Canadian Press
Comments
Want to discuss? Please read our Commenting Policy first.