Financial Measures (2009) Act Introduced
The Financial Measures (2009) Act, supporting a number of measures in the 2009-10 provincial budget, was introduced today, Oct. 2, by Finance Minister Graham Steele.
The Provincial Finance Act will be amended to allow government to table a deficit budget. Changes will also allow the revenues from the offshore offset to be spent on programs and services and remove the requirement for a deficit to be recovered the following year.
"We are amending this legislation to reflect the reality of the financial circumstances we are faced with today," said Mr. Steele. "Poor fiscal planning by the previous government has led us to this point."
The Financial Measures 2009 Act also includes amendments to the Income Tax Act to implement changes in the 2009-10 budget. Government is increasing and extending the incentive for new graduates to live and work in Nova Scotia by replacing the Graduate Tax Credit with a new Graduate Retention Rebate. The tax rate for the Equity Tax Credit will be increased from 30 to 35 per cent, starting Jan. 1, 2010.
As previously planned in the May 4 budget, changes will also defer the Transit Tax Credit as well as the Healthy Living Tax Credit extension to adults of the Healthy Living Tax Credit. In addition, amendments to the Revenue Act will provide for the tobacco tax rate increase, which was implemented on June 22.
A number of laws will be amended to implement previously announced increases to legislated fees and government charges, such as those for personal property, summary proceedings and corporation registration.
Changes to the Public Service Superannuation Act will support increased contributions to the Public Service Superannuation Fund, implemented in July. The increase is needed to improve the financial health of the plan.
Finally, the House of Assembly Act will be amended to freeze indemnity and salary increases for 2010 and 2011 for MLAs, Speaker, Deputy Speaker, Leader of the Opposition, leader of any other recognized party, and members of the Executive Council.