Minister Responds to Federal Economic Update

Nova Scotia Finance Minister Neil LeBlanc is encouraged by the strength of the Canadian economy, as outlined in an economic update released today, Oct. 30, by federal Finance Minister John Manley in Halifax.

Canada's economy is expected to grow by 3.4 per cent this year and 3.5 per cent in 2003. Federal surpluses are expected to grow to $14.6 billion in five years. Nova Scotia's most recent forecast update pegged economic growth at 2.6 per cent. It is expected to grow by 3.9 per cent in 2003.

"Based on these numbers the federal government is showing a $4- billion surplus for this fiscal year," said Mr. LeBlanc. "Even after allowing for a contingency fund, this will give the federal government some options to address the provinces' concerns around funding for health care."

Mr. LeBlanc noted that Canadians have identified health care as their number-one priority. He says people are expecting the federal budget to address this priority, particularly in light of expectations around the upcoming Romanow report on health care.

As national chair of provincial-territorial finance ministers, Mr. LeBlanc met with Mr. Manley last night to discuss issues facing finance ministers across the country.

"As we all entering our own budgeting periods, it is important that our voices are heard on critical issues," said Mr. LeBlanc. "Like Mr. Manley, Nova Scotia's approach will continue to be that we live within our means -- that's why we continue to press Ottawa on these priority issues."