Nova Scotia Forecasting Healthy Budget Picture
The province of Nova Scotia's second budget forecast for 2004-05 outlines plans for increased investment in key government programs and services and another surplus at the end of the year.
"Nova Scotia's financial position is better now than we expected at budget time last spring," Finance Minister Peter Christie said today, Dec. 20. "Additional revenues will allow us to invest more this year in the priorities of Nova Scotians while maintaining our commitment to fiscal prudence."
Total revenues from both provincial and federal sources are up by $249 million. This is primarily due to increased federal commitments for equalization and health care, as well as higher than expected provincial income tax revenues.
Expenditures overall will be $157 million higher than budgeted. New federal health funds are being targeted for health and health promotion -- including programs to reduce wait times, improve access to health care, and help Nova Scotians lead more active lifestyles.
Higher equalization and other funds will augment programs for Nova Scotia children and communities. There will be more funding for public school education, universities, community and economic development, tourism, agriculture, and support for Nova Scotians in need.
The government has also allocated $60 million in debt retirement for strategic infrastructure investment. This will give the government flexibility to invest in Nova Scotia's highways, roads, and bridges in future years.
Even with significant additional investments, the budget forecast projects a $2.7 million surplus for the fiscal year.
"Our commitment to sound fiscal management is as strong as ever," said Mr. Christie. "We believe the additional investments we are making this year will pay dividends in future, with stronger communities and a healthier, better educated population."
Nova Scotia's economic performance has been steady in recent years, and forecasters suggest growth will increase to 2.5 per cent in 2005 from 2.1 per cent this year.
Details of Nova Scotia's second budget forecast update are available on the Department of Finance's website at www.gov.ns.ca/finance .