The first forecast update shows government is on track to meet its 2014-15 provincial budget targets.
Government is forecasting a 2014-15 budget deficit of $274.5 million, $4.5 million lower than the $279 million estimated in the April budget, Finance and Treasury Board Minister Diana Whalen said today, Sept.
15.
“To keep our fiscal plan on course, I made several mid-year adjustments that will reduce spending by about $30 million,” said Ms. Whalen. “There have been a number of unexpected costs since April, including funding for the Nova Star ferry and for agricultural supports. Until we get to a sustainable balanced budget, mid-year changes like this may be necessary. I will continue to be vigilant and take action where possible to ensure we meet our budget targets.”
The adjustments for this fiscal year will reduce department spending by one per cent and reduce civil service hiring over the rest of the fiscal year. The one per cent reduction will not affect funding for district health authorities, education or support payments to Nova Scotians.
Ms. Whalen said these measures, along with an ongoing program review, will keep government’s long-term fiscal plan on track.
“We need to keep asking ourselves, should government be delivering certain programs and services and does the way we deliver programs and services make sense?” said Ms. Whalen.
“We have to make tough decisions and scrutinize every dollar spent. Government remains committed to the budget I tabled in the spring, and to our goal of a balanced budget in three years.”
Total revenue is forecasted to be $9.6 billion, an increase of $6.8 million from budget. Total expenses are projected to be $9.9 billion, a decrease of $37.8 million from budget.
Budget 2014-15 included:
— eliminating interest on provincial student loans
— help for new graduates starting careers here by defraying the employers’ costs in the first year of hiring through the Graduate to Opportunities program
— modernizing the apprenticeship program to give apprentices the experience they need for good jobs
— more spending on education, including smaller class sizes and supports for students having trouble in reading and math
— programs to train, recruit and hire physicians, with an emphasis on rural and remote areas
— investments in public transportation
— reduction in red tape to give businesses and Nova Scotians quicker, easier access to services and programs
A review of Nova Scotia’s tax, fee and regulatory structure has begun. The report, which will include suggested changes to improve Nova Scotia’s economic and business climates, is expected this fall.
Forecast update materials are available at www.novascotia.ca/finance .
Source: Release