Budget Bulletin: Fiscal Plan

Fiscal Plan: On Track

• 2000-01 deficit lower than anticipated.

• 2001-02 budget on track.

• $130 million tax cut in 2003-04.

The four-year plan the Nova Scotia government implemented last year to achieve financial stability is on track. In fact, year one finished ahead of projections. A deficit of $199 million is expected to be recorded in 2000-01, an improvement of $69 million over the amount budgeted.

For year two, 2001-02, a deficit of $91 million is expected to be followed by small surpluses in 2002-03 and 2003-04. In the fourth year, 2003-04, Nova Scotians will receive a 10 per cent provincial income tax cut that will put more than $130 million back into the hands of the people who earned it.

Critical to the plan is controlling expenses, especially in health. The plan aims to keep spending growth lower than the increase in revenues for each year.

Solid economic growth has resulted in higher than budgeted personal income tax and HST revenues in 2000-01. These provincial-source revenues are important, because they reflect economic growth in Nova Scotia with more people working and higher consumer spending. This revenue has enabled the government to achieve its first-year target and plan investments for 2001-02, which will yield long-term results.

NOTE: For other 2001-02 budget information, visit the Department of Finance Web site at www.gov.ns.ca/finance .