September 15, 2014 12:40 pm
Updated: September 15, 2014 6:55 pm

Nova Scotia forecasts slightly smaller deficit of $274.5M for 2014-15

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HALIFAX – The Nova Scotia government is forecasting a deficit of $274.5 million for this fiscal year, $4.5 million less than what was projected in the April budget.

Finance Minister Diana Whalen says in order to keep the government’s fiscal plan on course, she made mid-term adjustments that will reduce spending by about $30 million.

Whalen says the changes will cut department spending by one per cent and reduce civil service hiring over the rest of the 2014-15 fiscal year.

But she says there have also been a number of unexpected costs since April, including the completion of the loan for the Yarmouth-Maine ferry service.

She says while revenues are expected to increase by $6.8 million since the spring budget projections due to personal and corporate income taxes and petroleum royalties, challenges will remain and the government must remain frugal.

© 2014 The Canadian Press

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