Government Introduces Third Consecutive Balanced Budget

Finance Minister Peter Christie tabled the government's third consecutive balanced budget at Province House today, April 22, another step along the road to financial stability for Nova Scotia.

In 2004-05, the province will invest more money in health care and education than in previous years.

The health-care budget will receive a $230-million injection to fund District Health Authorities, the medical centres they operate and the IWK Hospital; payments to physicians; long-term care; and emergency health services. The Office of Health Promotion will receive $3.6 million to expand into new areas, such as healthy eating, injury prevention, problem drinking, and chronic disease prevention.

Health dollars have also been earmarked to hire additional medical expertise to help Nova Scotia deal with new and emerging health threats such as West Nile, SARS, avian flu and terrorism.

Effective Jan. 1, health-care costs for all seniors who reside in nursing homes will be fully paid by the province. This happens almost two years ahead of schedule, at an annual cost of $42 million.

The Department of Education will invest $45 million to build new schools, $13 million to upgrade existing schools, $25 million on the community college system and $4 million in new school buses.

"We have listened to Nova Scotians and protected their top priorities, health care and education," said Mr. Christie.

"Our government made some tough decisions, decisions that we did not take lightly, after Ottawa burdened Nova Scotians with funding shortfalls in its budget and cuts to its equalization program," explained the finance minister.

On Tuesday, Premier John Hamm said his government would postpone its personal income tax cut for some Nova Scotians.

"Our new tax plan means that more than half of all taxpayers -- fully 53 per cent -- will continue to receive their full 10 per cent income tax reduction; 96 per cent will pay less provincial income tax in the 2004 taxation year compared to the year before," said the finance minister.

Mr. Christie said the government is protecting low income families, those who most need the money.

The finance minister echoed observations made by the premier on Tuesday. "We did not raise the sales tax. We did not lay off hundreds or thousands of valued employees or offer them no pay increases. We did not bow out of the infrastructure program. We did not increase class sizes. Other provinces have had to take these drastic measures to deal with Ottawa's shortfalls. Nova Scotia remains one of the few provinces in Canada with a balanced budget."

The finance minister said tax relief is coming slower than the government would like, but it is coming.

"Make no mistake, this government has done everything it can to reduce the tax burden for as many Nova Scotians as we can, by as much as we can, and as fast as we can," said Mr. Christie.

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