Government spending way up as Nova Scotia budget picture improves
Deficit down by $363.3 million thanks to increased tax revenue, population growth
Nova Scotia's December fiscal update is forecasting a blizzard of money.
Finance Minister Allan MacMaster released the update to the 2022-23 provincial budget on Tuesday. It says revenues were up by $1.35 billion from March, when the budget was tabled, thanks to increases in tax revenues across the board and a growing population.
The biggest contributor is a prior-year adjustment of $620 million. That represents a truing of revenue from provincial tax sources compared to what was estimated at the time of the budget.
"It is a pleasant thing to see increased revenues because we know there are areas where we can spend those revenues to help people," MacMaster told reporters at a news conference in Halifax.
And spending they are.
Deficit drops by $363.3 million
The update shows there has been an increase in spending of almost $769 million since September.
That include recent announcements such as:
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$135.3 million related to COVID-19, inflation and service delivery within the health authority
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$134.4 million in Hurricane Fiona response programs
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$100 million to increase the heating assistance rebate program
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Almost $50 million related to travel nurses and hiring long-term care assistants.
The numbers add up to an improved financial position for the province, with the deficit down by $363.6 million. It's now anticipated to be $142.6 million, compared to the $506.2 million pegged in the budget.
Burying a surplus
MacMaster said the government learned of the favourable numbers in November. But he said the government did not wait for that to start helping people in need. He pointed to targeted programs such as an increase in the seniors care grant.
"We've been clear that while there are no quick fixes to our challenges, we will stand with Nova Scotians and make the investments necessary to move this province forward."
Opposition MLAs weren't buying that explanation. While they welcomed new spending to help those in need, the finance critics for the Liberals and NDP both said help could have come sooner.
Liberal MLA Fred Tilley accused the government of a flurry of spending in the last month in an effort to bury a surplus.
Tilley said that when the opposition was calling on the government in the fall to help people with the cost of living, MacMaster suggested such action could have unintended consequences and increase inflation.
"So now, when they need to spend the money, then they will spend it for their end," he told reporters.
"So I guess it's not going to increase inflation now."
New Democrat MLA Lisa Lachance said increased revenues show people have been paying all year to help the provincial finances, and help for them should have come sooner.
Lachance said the spending would be even more effective if it targeted those most in need through enhanced rent control, eliminating co-pays on pharmacare, increasing income assistance and raising the minimum wage by more, sooner.
"It's pretty hard to live in a cost-of-living crisis when you're making so little money," they said.
Earlier this month, Auditor General Kim Adair drew attention to the fact that Nova Scotia is the only province in the country where additional spending can be approved by the government without debate and a vote in the legislature. She said the accountability and transparency that ought to go with such spending is lacking.
Along with the additional department spending in this update, the provincial government has now approved almost $990 million in additional appropriations since the budget was tabled.
MacMaster said he didn't have a problem with the practice while in opposition, and he doesn't have a problem with it now. He said spending is debated in the media, with reporters covering announcements and speaking to ministers and opposition members, and it will likely be debated when the legislature resumes sitting.
"Somebody has to be the captain of the ship and it's the government," he said. "On this one, I don't agree with the auditor general."
'We're not actually pirates'
But Tilley and Lachance both said the government should be following the recommendations of the auditor general.
While there will be times when the government must act quickly, such as after a natural disaster, they said other instances of spending should be debated.
Lachance also took issue with MacMaster's characterization of the government being the captain of the ship.
"We're not actually pirates, and so we actually have a legislature for a reason."
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