Budgeting Process Under Way for 2000-01

Planning for the Nova Scotia government's 2000-01 budget is under way with staff working towards delivering a budget this spring.

During the budgeting process, government is being assisted by a number of initiatives, including the Voluntary Planning Fiscal Management Task Force, the government's internal program analysis and options review and departmental budgeting exercises.

"Governing is not and cannot be an accounting exercise. When preparing this budget, we must be focused on the priorities of Nova Scotians rather than making government fit the amount of dollars available," Finance Minister Neil LeBlanc said. "We are taking a reasoned approach to balancing our books while still protecting the services most valued by Nova Scotians."

The Fiscal Management Task Force has already presented an interim report with a final report due Jan. 31 following public consultations across the province. Voluntary Planning had been asked to assist government in identifying the priorities of Nova Scotians, information government requires for decisions that will lead to reduced spending.

At the same time, government has been internally reviewing all its programs and services to see if they still meet the needs they were intended for, and if those needs still exist.

Mr. LeBlanc said departments are working on a number of budget exercises, including one recommended by the task force in its interim report. The task force had advised departments to conduct two separate exercises based on the assumption their budgets were to be reduced by 15 and 30 per cent. The government exercise uses different figures -- 25 per cent over two years for most departments -- but the intention of the exercise is the same as recommended by Voluntary Planning's task force: for staff to focus on departmental priorities and its core businesses.

Mr. LeBlanc said government has already ruled out across-the- board reductions, whereby all program spending is reduced by the same percentage.

"The Voluntary Planning Fiscal Management Task Force report said across-the-board cuts don't work, and I agree with that," Mr. LeBlanc said.

By their nature, across-the-board cuts treat every program the same, he said, "when Nova Scotians clearly have their priorities, and government does as well." Instead, government has established three committees to review the information and recommendations of the Voluntary Planning task force and the internal programs analysis and options process.

These committees are categorizing the information according to the appropriate committee: economic, social and governance, which deals with the organization structure of government. With the benefit of advice and recommendations of Voluntary Planning and the internal process, the committees will make decisions about spending reductions based on the priorities of government and Nova Scotians.