Budget Bulletin: New Budgetary Pressures

If the Nova Scotia government had done nothing to get the province's finances under control, Nova Scotians would be faced with a deficit in 2000-01 of at least $564 million.

Here's how this number was arrived at. The 1999-2000 operating deficit is forecast to be $388 million (excluding Sysco cleanup and pension liability). Add to this new expenditure commitments and lost revenues of $409.9 million, which bring the total to $797.9 million. This figure is offset by $233.8 million of new revenues and non-recurring expenses, creating a total revenue shortfall of $564.1 million.

Following is a summary of major new spending commitments and lost revenues in 2000-01.

($ thousands) CHST Supplement (lost revenue) $107,000 Restructuring, technology, wages 91,000 Increased debt-servicing costs 84,900 HST compensation (lost revenue) 53,000 P3 school leases 29,000 Prior year adjustment (lost revenue) 25,000 Acquiring municipal social assistance costs 11,000 University funding formula 4,000 Office space leasing increases 3,000 Hiring more child protection workers 2,000

Total $409,900

Major new revenues and non-recurring expenses in 2000-01:
Other provincial revenue increases $103,000 CHST Supplement 75,000 Y2K expense 46,700 Election expense 6,000 Older fisheries workers assistance expense 3,100

Total $233,800

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