News release

Fiscal Targets Will Be Reached

Finance (to Oct. 2013)

The Nova Scotia Department of Finance today released an updated budget forecast that shows additional spending, but with the government's fiscal target well within reach.

The report forecasts the deficit to increase to $97.5 million from the $90.7 million budgeted. Part of the increase is a result of the recent wage settlement for nurses and health care workers. The budget for restructuring costs, which includes public service wage increases, was originally set at $53.7 million. It is now forecast to be $60.4 million. A further $10.4 million results mainly from accounting changes within the Department of Education budget.

These increases have been offset by lower debt-servicing costs and higher revenues.

"Increased program costs must come out of the existing budget -- increasing the deficit is not an option," Mr. LeBlanc said. "The $6.8 million is parked in the deficit line for now but it will not stay there."

The minister said the increase amounts to less than 0.2 per cent of spending, and government should be able to cover the amount without impact on programs or services. He added that the majority of spending so far this year is in line with the budget.

On the economic side, offshore energy development continues to counteract the effects of the North American slowdown. The Department of Finance continues to forecast economic growth of 2.3 per cent, which is in line with private-sector forecasts.

Other highlights of the update include a forecast of revenues increasing by $5 million. This is the result of $15 million in higher tobacco taxes, which will be offset by $10 million in lower HST revenues. HST revenues are forecast to be lower as the federal government has reduced the estimate of the total national pool from which HST and GST revenues are drawn.


NOTE TO EDITORS: The update has been posted on the Department of Finance Web site at www.gov.ns.ca/finance, click on Year End Forecast Update. Department staff will be available to the media at 11 a.m. in the Uniacke Room of Province House. The finance minister will be available for questions beginning at 11:20 a.m.