Economic Growth Generates Revenues to Fund Health Care

The latest quarterly report for the Province of Nova Scotia shows the province enjoyed strong economic growth in 1997 and is forecasting an even stronger performance in 1998.

"More Nova Scotians are working and buying consumer goods," said Finance Minister Bill Gillis. "As a result, we have increased revenues to meet our health care and education needs. This means Nova Scotia remains on track for a balanced budget in 1997-98."

The recent commitment of extra funds for Health and several other departments has been offset by savings in other departments, reduced debt servicing charges and increased revenues.

"It is now estimated that our economy grew by 2.3 per cent in 1997, and we are confident that we will have additional growth of at least 3 per cent in 1998," said Mr. Gillis. "This represents the best performance since the mid-1980s."

With the economic growth comes increased employment. In January, the number of people working in Nova Scotia broke through the 400,000 mark for the first time.

The increase in employment and economic growth has resulted in higher provincial source revenues, offset somewhat by lower federal source revenues. The province is now forecasting a slight increase in revenues from sales taxes because of this increased consumer spending. For example, automobile sales are up more than 20 per cent since the sales tax changes came into effect April 1.

Copies of the quarterly report may be obtained from the Department of Finance Internet site:

http://www.gov.ns.ca/fina/FEDPROV/FREPORTS/9709/INDEX.HTM

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http://www.gov.ns.ca/fina/minister/fnews/fnews.htm