N.S. auditor general calls out billions in spending outside budget process

Nova Scotia’s auditor general, Kim Adair, is determined to push for more accountability in government spending that bypasses the approval of the provincial legislature. In her latest report released on Tuesday, Adair revealed that over the past decade, expenses outside the official budget process have amounted to a staggering $7 billion. In the fiscal year 2023-24 alone, the government spent $1.38 billion without prior authorization from the legislature.

Adair emphasized the need for change to ensure transparency in how public funds are allocated. She reiterated her recommendation for amendments to the province’s Finance Act, which would grant more oversight authority to the legislature. Despite her consistent advocacy, the government has thus far refused to implement these changes.

One of the key issues highlighted in the report is the significant increase in extra-budget spending, known as “additional appropriations,” which made up 8.2% of total expenditures in 2023-24, compared to just 1.3% in 2014-15. Adair pointed out that government revenues surpassing budget forecasts in recent years have provided additional funds for discretionary spending.

Adair proposed clearer definitions for new programs or activities that require legislative approval and more detailed reporting on expenditures outside the budget process. Additionally, the report shed light on $2.4 billion in untendered contracts issued by Nova Scotia Health and other government entities over the past five years, including $291 million in fiscal year 2023-24 by the health authority alone.

The auditor general highlighted three health-care transactions that bypassed the standard procurement process, raising concerns about transparency and competition. While acknowledging the potential necessity of single-source contracts in emergencies, Adair stressed the importance of transparency and fairness in government procurement practices.

Opposition parties, including the NDP and Liberal critics, expressed support for the auditor general’s recommendations and called for greater transparency in government spending. Finance Minister John Lohr defended the government’s practices, stating that they adhere to the Finance Act to ensure accountability and transparency. However, Adair’s report underscores the ongoing need for reforms to enhance oversight and accountability in Nova Scotia’s budget process.