News release

Province Issues December Forecast Update

Finance and Treasury Board

The second forecast update for the 2014-15 budget shows lower spending and debt-servicing costs along with a one-time revenue increase, reducing the projected deficit to $220.6 million.

Finance and Treasury Board Minister Diana Whalen issued the update today, Dec. 11. Ms. Whalen introduced a mid-year spending reduction last August to help ensure government met its budget targets. Departmental spending is now forecast to be down $6.8 million from the budget estimate.

Total revenues are forecast to be $9.7 billion, up $95.8 million. The increase is mainly from higher corporate income tax revenue ($42.9 million) and petroleum royalty revenue ($5.1 million,) and from the prior year adjustment ($55.9 million).

"We have been working hard to put Nova Scotia on a sustainable financial footing. We have had to be vigilant and proactive to keep expenses in line with Budget 2014-15, and our fiscal outlook has not changed, so that vigilance must continue," said Ms. Whalen. "While corporate revenue is being adjusted upward, it's based on an estimate that could change. Given our overall fiscal outlook, the prudent thing to do is to continue our focus on fiscal discipline."

Highlights of the update include:

  • total expenses forecast to be $9.9 billion, up $3.4 million, mainly because of a $25.1-million increase in tax credits as government cleared a backlog of film and digital tax credit applications
  • lower revenues forecast from personal income tax ($5.9 million), HST ($11.3 million) and tobacco taxes ($15.1 million), reducing the net effect of the increase in corporate income tax and prior year adjustment
  • debt servicing costs forecast to go down $8.7 million to $869.3 million, mainly from low interest rates and timing of borrowing
  • four additional appropriations, totalling $20.7 million, were needed, the largest being $9.9 million for the province's share of a federal-provincial agricultural stabilization program for the mink industry

For more information, see the Department of Finance and Treasury Board website at www.novascotia.ca/finance .