Lower Taxes Highlight Surplus Budget

Lower personal taxes and more money for health care, education and roads highlight the Nova Scotia government's second consecutive balanced budget. Finance Minister Neil LeBlanc delivered the budget to the Nova Scotia legislature today, April 3.

"Lower taxes, sound economic infrastructure, a growing investment in education, healthier Nova Scotians and confidence in our future -- that is the direction of this government and that is the direction of this budget," said Mr. LeBlanc.

Nova Scotia taxpayers will pay lower taxes beginning in 2004 and will receive a one-time tax refund of $155, beginning this June.

"Lower taxes will enhance the competitive position of our province relative to other jurisdictions," he said. " Lower taxes will keep the economy growing. Lower personal taxes will spur consumer spending, while lower business taxes will rev-up the engine of economic growth."

The minister said Nova Scotia will have a more competitive tax environment, and the lowest statutory tax rates in Atlantic Canada. Across Canada, only three provinces will have a lower marginal rate for high-income earners, and only two provinces will have a lower marginal rate for low-income earners.

Effective Jan. 1, 2004, tax rates for all provincial income taxpayers will be lowered by approximately 10 per cent -- an annual saving of $147 million for Nova Scotia taxpayers. The rate reduction will be greatest at the lower income levels. About 3,500 Nova Scotia low-income taxpayers will no longer have to pay any personal income tax.

Mr. LeBlanc said the Nova Scotia taxpayer refund of $155 per taxpayer, will put $68 million dollars back into the hands of Nova Scotians, and into the provincial economy as quickly as possible.

Nova Scotians will see $140 million in additional funding for health care, bringing the Department of Health's annual budget to $2.1 billion. Health now accounts for 44 per cent of program spending.

"More dollars have been directed to front-line health care, to nurses and doctors and to providing stable, predictable funding to hospitals." Mr. LeBlanc said.

Nova Scotia's public schools and classrooms will benefit with an extra $43 million. As well, $5.1 million will offer debt relief to 9,500 Nova Scotia university students.

The government is investing $106 million in new highway construction and bridge replacements, a $16-million increase over last year. Eight new schools will be built with $62 million, while another $18.5 million will help with school renovations.

A higher than anticipated surplus of $14.5 million was recorded for the 2002-03 fiscal year. That's $6.2 million more than forecast last December. That surplus will be applied against the debt. The surplus for 2003-04 is an estimated $2.8 million.

Mr. LeBlanc said, "This budget is the product of a government that is confident about the future and shares the vision of a growing number of Nova Scotians. This province can continue to grow stronger, smarter, healthier and more prosperous."