Second Balanced Budget On The Way

Nova Scotia's finance minister says a second consecutive balanced budget is in the works for 2003-2004. In confirming the balanced budget, Neil LeBlanc also repeated his pledge to lower personal income taxes.

"Nova Scotia should, and soon will, boast the lowest income taxes in Atlantic Canada. Lower taxes will keep the momentum going in our growing economy," the minister said.

Mr. LeBlanc was speaking to the Metropolitan Halifax Chamber of Commerce today, March 25, in his last public speech before delivering the 2003-2004 budget, in April, to the Nova Scotia Legislature.

He said for the first time in more than a generation, Nova Scotia is gaining financial strength.

"We are all working to make this a healthier, more prosperous, more self-reliant province. A place where our children can find all the opportunity that too many now seek in Alberta, Ontario and America," said Mr. LeBlanc.

The finance minister also reported that the province's goal of reducing foreign-held debt has been met, 18 months ahead of schedule.

"We expect our foreign currency exposure to drop to 20 per cent by March 31," Mr. LeBlanc said. "Just eight years ago, our exposure exceeded 70 per cent. In 1999, it was still in excess of 50 per cent. We were far too vulnerable to fluctuations in foreign currency. That vulnerability has been addressed, and today 80 per cent of our debt is either fully hedged or held in Canadian dollars."

Mr. LeBlanc said the provincial economy continues to grow at a pace that puts Nova Scotia near the top of the national pack. More Nova Scotians are working than ever before. Most regions of the province now regularly post single-digit unemployment rates. For more than a decade they were in the double digits. In the past four years, 26,000 new jobs have been created for Nova Scotians.

The minister said the one trend in which Nova Scotia was not keeping pace with other provinces involved tax competitiveness.

"Lower personal income taxes will improve Nova Scotia's competitive position and help keep the momentum in our growing economy," he said. "This year we will lower income taxes."

The minister also said that health spending will increase again this year, as it has every year of this government's mandate. He said the province would borrow money again this year to address the growing need to fix roads schools and bridges.

"The government, and an increasing number of Nova Scotians, believe we are headed in the right direction. We are, collectively, becoming more confident that we can control our destiny, and with that realization comes greater optimism," Mr. LeBlanc said.