N.S. government tables deficit budget with more talk about resource development

Nova Scotia’s finance minister, John Lohr, recently presented the province’s budget, fulfilling campaign promises amidst economic uncertainty. The budget forecasts revenues of $16.5 billion, expenses of $17.6 billion, and a deficit of $698 million. However, this deficit could potentially increase if the government needs to access a $200 million contingency fund in response to possible tariffs from the United States.

Lohr emphasized that decisions regarding the contingency fund will be made based on actions taken by the U.S., as there is still significant uncertainty surrounding the situation. The budget includes several tax cuts promised by the Progressive Conservative party during the election, effective April 1. These cuts include reducing the HST by one percentage point, increasing the small business threshold, and eliminating tolls on the Halifax harbour bridges.

The removal of tolls is expected to save drivers $39 million, but it also entails costs for the province. The Halifax-Dartmouth Bridge Commission will be converted into a provincial Crown corporation, requiring an operating grant, capital repairs, and an increase in provincial debt. Despite the economic uncertainty, Lohr stressed the importance of delivering on tax relief promises to stimulate the economy.

In addition to tax cuts, the budget includes funding for campaign promises such as providing the shingles vaccine for seniors, free parking at health-care sites, and a new RSV immunization program. The government is also investing in expanding the school lunch program, rent supplements, and HST relief for new rental housing. A focus on natural resource development is evident in the budget, with $500,000 allocated towards advancing the critical minerals strategy.

Lohr highlighted the government’s shift towards emphasizing natural resource development following the election of U.S. President Donald Trump and the threat of tariffs. However, opposition parties have expressed concerns about the government’s sudden focus on resource development and the lack of a clear plan to address economic uncertainty. The budget projects an increase in net debt and deficits over the next four years, largely attributed to capital construction projects.

Despite the government’s efforts to address economic challenges, concerns remain about the growing debt and deficit projections. The budget also includes measures to increase revenue, such as raising the non-resident deed transfer tax. Overall, the budget reflects the government’s commitment to fulfilling campaign promises while navigating economic uncertainties to stimulate growth in Nova Scotia.