News Release Archive
PREMIER--NOVA SCOTIA WILL LIVE WITHIN ITS MEANS ------------------------------------------------------------ Nova Scotia will have a fully balanced budget in 1996-97 - the first in 25 years - Premier John Savage said today, and he pledged that "as long as I am premier, we will continue to live within our means." At a Province House news conference, Premier Savage and Finance Minister Bernie Boudreau declared Nova Scotia's four-year expenditure control program a success, after just two years. However, both warned that difficult decisions will still be required to maintain and build on the province's fiscal and economic gains. "Fiscal recovery, and the social and economic benefits recovery will bring, required some very difficult decisions. And make no mistake, more tough choices will be needed to maintain stability and build security," the premier said. Mr. Boudreau added that the four-year expenditure control plan was designed to bring the spending of the province in line with its income. With a fully balanced budget in 1996-97, that goal will be accomplished. Next week, the minister will release a white paper proposing a new plan for Nova Scotia's long-term financial security. The financial progress report, released today, shows a $37.3 million surplus in the province's operating account for fiscal 1995-96. That is a $65.5 million improvement over the $28 million deficit estimated in last spring's budget. However, the government will still record a $151 million budgetary deficit this year, when capital costs are taking into account. In 1992-93 the budgetary deficit was $617 million. Premier Savage said the tough choices his government made were the right choices for the province's economy and for the future of public programs and services. "They were the right decisions for Nova Scotians looking for work and the right decisions for Nova Scotians looking for hope. Our economic future depends on our competitive advantages, and only a financially secure Nova Scotia can offer those advantages," the premier said. Premier Savage pointed to the fact that 30,000 more Nova Scotians are working today than when his government came to office as evidence that the fiscal and economic plans are working. The tough financial decisions secured the future of vital government services in health care, education and social services, the premier said. "And, the decisions we made are right for young Nova Scotians whose future must be built on a solid foundation, not buried by a mountain of debt." The premier said Nova Scotia "still carries the burden for a generation of irresponsible government spending. That burden is a $9 billion debt and the ($1 billion) annual payments on that debt." The white paper Mr. Boudreau will release next week will address those problems. Mr. Boudreau said the white paper will set new goals for the province. "Now we must ensure that no government ever takes this province back to the brink of ruin. Now we must take aim at the debt, and begin to recover the billion dollars a year we lose to debt payments. And now we must improve and expand services responsibly, as we can afford them," said the minister. "It's important to understand that our fiscal plans are always designed in support of our social and economic goals. Imagine what Nova Scotia can do in health care, in education, in all areas of our social responsibility, as we recover more and more of that $1 billion we now lose to debt payments. Imagine how our economic prospects will improve as our competitive advantages expand." The white paper, entitled Shaping the Future, will be released by the finance minister Wednesday, Feb. 7. -30- Contact: Jim Vibert 902-424-4886 trp Jan. 29, 1996 - 1:05 p.m.