Introduction of Financial Legislation

Finance Minister Neil LeBlanc has introduced legislation to implement the measures announced in last week's budget.

Most are technical amendments to ensure federal and provincial tax legislation is properly linked and the intent of provincial legislation is clear. The bill also extends the Film Development Tax Credit to Dec. 31, 2000, and amends other provincial legislation to recognize the fact that the province will be running a deficit this year.

"The spending decisions for 1999-2000 were set well before our government took office," said Mr. LeBlanc. "The people of Nova Scotia have given us a mandate to reach a true balance when the budget for 2002-2003 is tabled. The amendments today recognize the reality that until that point, the province's finances will be in deficit."

New legislation implementing the government's mandate will be introduced next spring with the budget for 2000-2001.

"The new legislation will reinforce our pledge that the budget be in balance for 2002-2003, and that a third of any surpluses be used to pay down debt," said Mr. LeBlanc.

The Financial Measures (1999) Act will suspend the requirement for a balanced budget and repeal the provision to use half of the Sable royalties to pay down debt. Under generally accepted accounting principles, the government's bottom line, the final provincial deficit is not reduced unless the government has a true overall surplus.

"Under current circumstances we think it is better to dispense with the pretense that we are actually reducing the debt," said Mr. LeBlanc.