Balanced Budget Still on Track

Nova Scotia's finances are in good shape, Finance Minister Neil LeBlanc confirmed today, Aug. 30, in his first financial update since the spring budget.

"It is still early in the fiscal year, but our revenues, expenditures and economic performance are strong," said Mr. LeBlanc. "Our revenue projections are higher than our spending, so we are showing a small surplus of $3.4 million for the 2002-03 fiscal year."

Higher-than-expected revenues of $7 million are helping to offset increased expenditures of $5 million. Only the departments of Education and Community Services are projecting spending increases. The economic outlook is brighter than forecast, with gross domestic product (GDP) growth of 2.6 per cent, compared to 1.9 per cent at budget.

The minister noted that Standard and Poor's rating agency recently affirmed the province's credit rating of A-, with a stable outlook. The rating is due to solid economic performance and improved fiscal performance during the past three years to control spending and reduce deficits. The agency notes that despite the sharp economic slowdown throughout North America in 2001, Nova Scotia's economy posted the second-highest growth rate among the provinces.

"Today's financial forecast is a good one," said Mr. LeBlanc. "I feel optimistic about the way our economy is going and the upward trend with revenues, but we need to keep costs in line. With pressures coming at us from every angle, we are working more diligently than ever to control spending."

The Nova Scotia government produces a forecast update containing financial information about revenues, expenditures and the province's economic performance at various times throughout the year.