Nova Scotia Produces First Balanced Budget in 40 Years

Saying 40 years is long enough, Finance Minister Neil LeBlanc today tabled Nova Scotia's first balanced budget since 1962.

"This government made a commitment to present a truly honest and balanced budget in the third year of our mandate," said Mr. LeBlanc. "This budget honours that commitment." The minister described it as "an all-in budget," of $5.3 billion.

The 2002-03 budget spends more on health care, education and roads. The government is adding $134 million for health care, a seven per cent increase over last year. The Department of Health's budget now approaches $2 billion. A full 44 per cent of government's program spending goes to meet the health-care needs of Nova Scotians.

Higher gas and tobacco taxes, user fees and increased revenues from the Nova Scotia Liquor Corporation and the Nova Scotia Gaming Corporation will contribute slightly more than $100 million in new revenue. Increased employment and consumer spending throughout the year are expected to drive increases in provincial income and sales taxes.

The $5.3 billion in total revenue represents a $160 million, or 3.1 per cent, increase over last year.

Higher cigarette prices are the biggest deterrent to smoking, particularly among young people, the minister said, as he announced the tax hike on tobacco will increase the price of a carton of cigarettes by $5.

The education budget is up $23 million, with $19 million more headed for public schools despite a decline in student numbers of 2,200 this year. Funding for the Nova Scotia Community College increased by $4 million, and university funding was held stable at $201 million.

The government will spend $85 million to help fix Nova Scotia's roads, highways and bridges. All revenue from a two-cent-per- litre increase in fuel tax -- $23 million -- will be dedicated to highway improvements.

The new gas and tobacco prices take effect at midnight tonight.

"This government respects, and this budget responds to, Nova Scotians who work hard to live within their budgets and who expect nothing less of their government," said Mr. LeBlanc.

The province's debt stands at $11.6 billion. It will cost taxpayers $865 million to pay the interest on that debt in the upcoming fiscal year. The budget shows a small surplus of $1.3 million. Nova Scotia uses the most complete and transparent accounting practices in Canada.

NOTE: For further 2002-03 budget information and background materials, visit the Department of Finance Web site at www.gov.ns.ca/finance .