Government Tightens Spending

The provincial government is reducing the overall spending of many departments in order to manage the risk of uncertain revenues and to offset upward spending pressures, Finance Minister Neil LeBlanc said today.

"We are controlling the side of the ledger that we can control, and that's spending," the minister said.

Most of government will reduce overall yearly spending by about one-half of one per cent. Departments previously reporting over-expenditures -- notably education and community services -- will reduce those overruns through a variety of measures. Neither department is filling vacant staff positions.

The minister said the province's revenue picture -- like that in every jurisdiction in Canada -- is clouded by the economic fallout of current global events.

The province's budget was built on conservative economic and revenue projections, Mr. LeBlanc said, so the government had built-in some protection against an economic downturn. However, the extent of the revenue impact for the remainder of the current fiscal year, and for the coming year, is uncertain.

"Much of the impact of the current economic downturn, worldwide, will be felt in our revenues next year. We have a very difficult road ahead," the minister said. "We expect and will demand very careful financial management right across government, and by every external agency, board and authority that derives its funding from the province."

"With revenue uncertainties and ever-present spending pressures, we cannot afford to wait and see how severely the North American economic slowdown will affect us," said Mr. LeBlanc. "We are taking prudent and cautious action today to properly manage our fiscal challenges. Uppermost in our minds is the responsibility we have to Nova Scotians to continue providing quality services and programs that meet their needs," the minister added.

Departments have identified more than $17 million dollars in spending reductions they can achieve during the final five months of the fiscal year without adverse impact on key programs and services. Those reductions are to some degree offset by upward spending pressure in education and community services.

The minister said both school boards and hospital authorities were directed to live within their budgets.