Government's Back to Balance Plan Takes Next Step

Government is continuing to advance its plan to protect public services and get the province back to balance by 2013-14.

Departments will identify specific options to reduce spending over the next three years to ensure government lives within its means.

Government spending grew by a cumulative 61 per cent between 2002-03 and 2009-10. Today, Oct. 15, all departments were asked how they could reduce spending by five per cent. Departments other than Health, Education and Community Services were also asked how they could reduce spending by 10 per cent.

Departments must also absorb increased costs related to wages, inflation and program operations.

"Government will not have the capacity to protect and improve vital services like health care unless it takes meaningful steps to change spending practices and to live within its means," said Deputy Premier Frank Corbett.

"But make no mistake, we will not take the failed approach of imposing across the board cuts. We're taking a thoughtful, strategic approach to streamline, reduce waste and improve services. We will look at all the options and, in consultation with Nova Scotians, move forward with those that allow us to protect key services."

About 60 per cent of all government spending is administered outside the civil service in the broader public sector. Therefore, government will continue to work directly with universities, school boards, municipalities and health authorities to identify options to reduce spending in these areas while protecting and improving vital services.

Last fall, an economic panel found that the province was on an unsustainable path to a $1.3 billion deficit unless steps were taken to increase revenue, reduce spending and grow the economy. Expenditure restraints undertaken by the government so far have reduced that projected deficit by $400 million.