News Release Archive
FINANCE--WHITE PAPER PROPOSES LONG TERM FINANCIAL PLAN
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A long term financial plan to lower taxes, ensure the future
of quality public services and reduce the province's $9
billion debt was proposed today in a government white paper
released by Finance Minister Bernie Boudreau.
The paper, entitled Shaping the Future, contains proposals
for legislation that the minister says will achieve three
essential goals.
"We want to ensure that no government ever again takes this
province to the brink of financial ruin. We want to enhance
and expand core public services responsibly, as we can
afford them. And, we want to begin to attack Nova Scotia's
debt, so we can recover the $1 billion a year we pay in
interest on that debt."
Interest on the debt has grown from nine per cent of the
budget in 1979 to 21 per cent today, chewing up dollars the
government needs to support essential services.
The province expects to fully balance its budget in 1996-97,
achieving the goal of the expenditure control plan. The long
term plan proposed in the white paper "takes up where
expenditure controls leave off."
The white paper includes proposals that would maintain a
balanced budget, and eventually lead to a budget surplus,
which would be used to pay down debt and lower taxes.
"Higher taxes and borrowed money paid for the growth of
government during the 1980s. It was double jeopardy,
government style. Dealing with that double jeopardy - taxes
that are too high and a mountain of debt - has become the
public policy challenge of the 90s."
Mr. Boudreau said high taxes diminish Nova Scotia's
competitive position and by extension, deny Nova Scotians
jobs. Since 1980, the salary of a middle income Nova Scotian
has roughly doubled. But take home pay hasn't kept up,
because provincial and federal income taxes have increased
by 143 per cent, he said.
To keep the budget balanced the minister is proposing that
the government pass a law permitting total spending to
increase, but only in direct proportion to increases in
revenue.
He noted that the government faces a serious challenge just
to maintain a balanced budget over the next three years,
given a reduction in health, education and social assistance
funding from Ottawa.
"With less money we have to be more selective and a lot
smarter; and we have to ensure the benefits from the dollars
we spend are passed on to the people, and not choked off by
bureaucracy."
The minister said the government needs to target its
resources to core public services, and that may mean getting
out of some businesses in which it is currently involved.
He said more emphasis could be placed on public-private
partnerships and said the sale of some provincially-owned
assets would be considered, after public consultation.
The white paper also proposes measures to ensure
government's financial decisions are visible to the public.
These include legislative consideration of the budgets of
Crown corporations and a limit on the amount of money
cabinet can spend without approval from the House of
Assembly.
"The benefits of a financially secure province cannot be
overstated. Lower taxes will give Nova Scotia the
competitive advantages we need to compete and win in the
global marketplace, resulting in better jobs and more
economic opportunities for Nova Scotians. Financial security
will guarantee Nova Scotians have quality health care,
first-rate education and other vital services today and
tomorrow."
Mr. Boudreau said he hopes the white paper generates broad
public debate. The government's actions, he said, will be
shaped by that debate. The paper includes a survey that Nova
Scotians are asked to complete and return to the Department
of Finance. People are also invited to send additional
comments, written briefs and submissions.
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EDITORS NOTE: THE WHITE PAPER, SHAPING THE FUTURE, IS
AVAILABLE AT THE NOVA SCOTIA GOVERNMENT BOOKSTORE, 1700
GRANVILLE STREET, HALIFAX. 902-424-7580 OR 1-800-526-6575.
COMMUNICATIONS SERVICES IS MAILING COPIES TO EDITORS AND
NEWS DIRECTORS, TODAY.
Contact: Jim Vibert 902-424-4886
trp Feb. 07, 1996 - 1:00 p.m.