News release

Budget Highlights For The Fiscal Year 2004-05

22 April 2004 | 2:15 PM

STEADY ECONOMIC PERFORMANCE ... STRONG PROVINCIAL REVENUES

Third consecutive balanced budget
2003-04 surplus of $14.5 million; higher than projected despite floods, blizzards, and Hurricane Juan
2004-05 surplus of $2.1 million, in addition to the province's first deposit in its debt retirement fund
Nominal GDP forecast to grow to 3.4 per cent in 2004
Steady employment numbers projected for 2004
Federal sources grow $6 million, 0.32 per cent
Provincial sources grow $267 million, 8.07 per cent

TAX CHANGES FOR 2004-05

10 per cent personal income tax reduction remains in place for individuals with taxable earnings of $29,590 or less; applies to 53 per cent of Nova Scotia taxpayers
96 per cent of Nova Scotia taxpayers will pay less personal income tax in 2004 than in 2003
New personal income tax bracket added for high-income earners: taxable earnings $93,000 and above, tax rate 17.5 per cent
Large corporations tax increases from 0.25 per cent to 0.3 per cent; applies to 1,400 of Nova Scotia's largest corporations, effective April 1, 2004
Corporation capital tax on financial institutions increases from 3 per cent to 4 per cent; applies to banks and trust companies, effective April 1, 2004
Small business tax threshold implemented a year early; threshold increased to $300,000, effective Jan. 1, 2005

INVESTING IN PRIORITIES

Health

Health budget increases $230 million; Office of Health Promotion budget increases $3.6 million
Total health-care budget at $2.36 billion
Seniors living in nursing homes will no longer pay for their medical costs effective Jan. 1, 2005; seniors' contribution based on income not assets
Funding for long-term care beds, Pharmacare, ERs, orthopedics, Provincial Wait Time Project, Pediatric Rehabilitation Program, and Maritime Genetics Program
Hospitals receive $78.5 million more; medical payments are up $85.6 million; Long Term Care up $ 24.1 million

Education

Public education funding up $22 million; per student funding continues to increase
Funding for special needs and smaller class sizes in primary and Grade one
89 per cent of Nova Scotia students meet or exceed expectations in literacy, and 81 per cent of students met or exceed expectations in writing
Nova Scotia Community College receives an additional $3 million in operating funding

Families

Community Services budget up $27.7 million; community supports for adults budget accounts for $10.3 million
Caseloads under Employment Assistance and Income Support Program continue to decline
Increased funding in Early Childhood Development and Affordable Housing Program

ADDRESSING THE INFRASTRUCTURE DEFICIT

Capital budget $250 million, plus $38 million in capital grants for hospitals
Investment in highway up $6 million to $112.2 million, including investment in steel truss bridge program
New school construction stands at $45.9 million, and additions and alterations $13.4 million
Nova Scotia Community College expansion, $25.5 million in 2004-05; part of $123-million expansion announced in 2003-04
$14-million investment in IT projects, including SAP financials in HAS and completion of the HR payroll/system for the province and school boards

PAYING DOWN THE DEBT

Provincial credit rating improved
Debt retirement plan introduced in legislation -- first deposit in debt retirement fund in 2004-05
$6 million in the debt retirement fund and $4 million debt retirement contingency
Foreign currency exposure 16.9 per cent -- well below target
Net direct debt to GDP ratio continues in its positive trend

NOTE: For further 2004-05 budget information, see the Department of Finance website at www.gov.ns.ca/finance .