N.S. 'deficit' budget DOA: opposition

Nova Scotia's minority Progressive Conservative government has presented a budget both opposition parties say they won't support.

Finance Minister Jamie Muir tabled the 2009-10 budget on Monday, calling it the province's eighth consecutive balanced budget and forecasted a $4-million surplus.

There is $3.4 billion allocated for health care, $1.4 billion for education, and millions more for capital projects. As for taxes, there is an increase to the basic personal exemption and cuts to large corporate and small business tax rates. The tax on a carton of cigarettes is going up $10.

But both opposition leaders say this is really a deficit budget because the Tories want to spend $260 million that, by law, must go to pay down the province's $12-billion debt.

NDP Leader Darrell Dexter said the Tories should simply admit to overspending.

"They need to bring forward an honest statement of the financial position of the province to the people. They deserve no less," said Dexter.

Like Dexter, Liberal Leader Stephen McNeil said his party will not support this budget.  "This budget is in deficit. As we have said from the very beginning, we would not be supporting a deficit budget," McNeil said.

Earlier Monday, after eight minutes of questioning by reporters, Muir admitted that the budget, as it stands, is not balanced.

"I guess until that … provincial Finance Act is changed, yes, the budget would be in deficit," he said.

Under a proposed amendment to the Finance Act tabled Thursday, the government would be allowed to spend the money instead of putting it on the $12-billion debt.

Debate on the bill is expected to continue this week. However, both the NDP and the Liberals have said they won't support it.

If neither opposition party backs it, the government falls, triggering an election.