Finance Minister Seeks New Revenue

Finance Minister Neil LeBlanc said a combination of reduced spending and increased revenue will be necessary to balance the upcoming budget.

The minister spoke to the Bridgewater and area Chamber of Commerce today.

"Spending cuts alone are not enough. We have to increase our revenues to achieve a balanced budget," said Mr. LeBlanc.

The minister said he is examining all options, but believes that cost recoveries for services may provide the best solution. Nova Scotia is expecting $40 million less revenue from the federal government this year and must look to its own income sources for additional money, he said.

"Nova Scotians can expect that this budget will mean higher fees for some services and reductions and elimination of selected programs and services."

The minister said his colleagues and staff are narrowing a previously identified gap of $220 million and will close that gap before budget day.

Mr. LeBlanc said the $220 million gap includes the current year's deficit projection of about $100 million, unanticipated wage settlements of about $80 million and a revenue decline of about $40 million.

He said it is important for Nova Scotians to understand the significance of balancing the budget and why it should not be postponed yet again.

"Forty years of deficit financing doesn't come cheap," said Mr. LeBlanc. "We're paying close to $900 million a year in interest payments on a debt that tops $11.6 billion. Another deficit just means more debt, more interest and ultimately less money for hospitals, schools, roads or anything else."

The minister added that he expects more accountability from publicly funded organizations, as $2.8 billion of taxpayers' money is handed over to municipalities, school boards, district health authorities and universities.

The 2002-03 budget will be introduced in the legislature this spring.