Nova Scotia's 2023-24 budget on track with deficit forecast of $264M, says finance minister

Nova Scotia's budget remains on track with a slight $14.6-million improvement over the $278.9-million deficit estimated last spring, says Finance Minister Allan MacMaster.

In a budget update presented Monday, MacMaster said the reduced deficit forecast for the 2023-24 fiscal year — now standing at $264.3-million — is mainly due to increased tax revenue from the growing population. According to provincial officials Nova Scotia has seen population growth of 3.2 per cent in 2023, leading to employment gains of 2.7 per cent, while wages are up 6.6 per cent.

"These factors had a strong impact on last year's budget results and continue to be a part of the reason why our revenues are higher for this forecast," the minister told reporters, adding that revenues are up by $492.7 million from the budget estimate to $14.8 billion.

However, expenses are also up $440.2 million to $15.3 billion, mainly due to heath-care spending, and money spent on cost-of-living supports and debt servicing.

Health expenses increased by $363 million as a result of wage settlements for doctors and nurses and the cost of using travel nurses to fill staffing shortages. Another $82.6 million went to cover the government's rebate program for heating assistance, while $58.5 million was spent on disaster assistance after May's wildfires and severe flooding in July.

MacMaster cautioned that the province's economy is showing signs of slowing down, which means revenue increases such as those seen recently will be less likely in the future.

The new figures also show that the government has spent a further $154.4 million that wasn't included in the March budget, bringing the total for so-called additional appropriations for the current fiscal year to $777.5 million. MacMaster said the pace of such spending is not expected to reach last year's record total of $1.7 billion.

In a report this month, provincial auditor general Kim Adair-MacPherson again criticized the extent of spending that is done without legislative oversight. Adair-MacPherson recommended the Finance Act be amended so the spending is brought before the legislature for debate — as is required in other provinces and federally.

"I do disagree with the auditor general as I've said before," said MacMaster, who maintains the province's twice yearly budget updates provide "transparency and accountability."

Liberal Leader Zach Churchill said the update shows the government is collecting more in taxes while it's spending record amounts without improving access to health care and affordable housing. "People are paying more in taxes at a time when the price of everything else is going up," he said.

NDP Leader Claudia Chender characterized the government's fiscal plan as a disappointment in terms of what it's doing for people who rely on the government for help. She added that a pending economic slowdown means there should be more strategic spending in areas of need.

"This government needs to be careful ... and needs to be much more serious about spending money in a way that is accountable and in a way that makes a difference in the lives of Nova Scotians," Chender said.