Minister Identifies $220-Million Gap

Finance Minister Neil LeBlanc says a gap of $220 million is standing in the way of a balanced budget, but promises to close the gap with the spring budget.

The minister was speaking at the Truro Chamber of Commerce in the first of a series of pre-budget sessions with business groups around the province.

Mr. LeBlanc said that even without taking any other cost pressures into account he is looking at a gap of about $220 million, due to the current year's deficit projection of about $100 million, wage settlements of $80 million and a revenue decline of $40 million.

"Deficit financing will end with this budget," said Mr. LeBlanc. "Interest on our debt is squeezing our ability to pay for the things Nova Scotians expect and need from government. The time has come to take a stand and balance the budget."

Mr. LeBlanc said the 2002-03 budget will be a turning point for this province, marking the first time since 1962 that a government brings down a budget in which all spending commitments are covered from current-year revenues.

Nova Scotia's debt is more than $11.6 billion. The province also has the highest provincial debt per capita in Canada, at $12,380 per person.

He said that while health is government's largest single cost, interest payments on the debt are next, costing almost $900 million.

"We spend more money paying the interest on the debt than we do for the primary to Grade 12 school system," he said.

"The best thing we can do for health care, education and every other program government offers is to balance the budget," said Mr. LeBlanc.

Government departments other than health, education and community services have been asked to cut their budgets by as much as 10 per cent to help balance the upcoming budget.