Balanced Budget to Protect Health Care

Nova Scotia will continue to invest in health care and education, while bringing in a balanced budget for 2004-05, said Nova Scotia Finance Minister Peter Christie.

"We are committed to protecting health care and education, but that leaves us struggling to appropriately fund other programs and services," Mr. Christie told members of the Strait Area Chamber of Commerce today, March 30.

Mr. Christie said that having to pay back Ottawa almost $200 million in federal transfer payments due to a federal miscalculation on population numbers is the primary reason for the shortfall.

For the third consecutive year, the government will balance the budget, said Mr. Christie. "Spending more than what we take in is not an option," he said.

The Nova Scotia government continues to invest more in health- care programs and services, the minister said, while the federal government's financial support has actually flatlined. He said the federal budget did not provide any new money for health care, but re-announced the one time pay-out of two billion dollars for the entire country. He noted that Nova Scotia's health-care costs are expected to grow by seven to 10 per cent each year.

He said that lowering taxes puts money back into Nova Scotians' hands, and improves the province's competitive position. He noted that the provincial government balanced the budget before lowering taxes.