Budget Bulletin: Four-Year Fiscal Plan

With this budget, the Nova Scotia government is embarking on a four-year plan to fiscal stability. The plan will see deficits gradually eliminated with a small surplus in 2002-03 and a surplus and tax cut in 2003-04.

The objective is to remake government into one that reflects the priorities of Nova Scotians. This means a smaller, less costly government, concentrating on those areas of responsibility where government belongs. The result will be a more efficient, service-oriented government that operates within its means.

That result will be achieved by careful adherence to the government's four-year fiscal plan. Under this plan, revenues, fueled by private-sector led economic growth, will increase. It is therefore critical that the cost of running government does not grow with revenues, but remains under control. By controlling program expenses, revenue growth will eliminate the need for deficit financing in 2002-03. As revenues continue to grow, a larger surplus will enable the government to return increased revenues to Nova Scotians in the form of a 10-per cent tax cut in 2003-04.

The size of Nova Scotia's debt means that debt-servicing costs will remain high throughout the four-year plan. Debt-servicing costs will start to decline once deficit financing is eliminated and surpluses can be applied to the principal.

NOTE: For other 2000-01 budget information, visit the Department of Finance website at www.gov.ns.ca/finance .