Financial Measures Act Introduced

Finance Minister Peter Christie introduced the Financial Measures Act today, April 28, to support a number of measures in the 2005- 06 Nova Scotia budget, including an updated Debt Reduction Plan that incorporates new offshore revenue expected from Ottawa.

Amendments to the Provincial Finance Act will support provisions of the new 2005 Debt Reduction Plan, which the minister also released today.

"The Financial Measures Act touches on some of the key priorities of our budget this year, ranging from raising healthy children to promoting good fiscal management with an updated Debt Management Plan," said Mr. Christie. "We are following through with the commitments we have made to Nova Scotians."

The province is expecting to receive $830 million in offshore revenues from Ottawa this year, and the legislation commits the government to balancing its budget in each of the next seven years without relying on funds generated by this offshore money.

A new public debt management fund will also be created to consolidate separate funds used previously to manage and retire the province's debt.

Changes to the Income Tax Act will support budget measures for:

• a healthy living tax credit to offset the cost for children under 18 participating in sport or recreational activities;
• reducing the large corporations tax on capital over four years;
• increasing the small business threshold for corporate taxes; and
• increasing and extending the film industry tax credit to 2016.

Amendments were also made to clarify existing legislation related to applications for the equity tax credit and the labour- sponsored venture-capital corporation tax credit.

A number of changes to the Income Tax Act were made at the request of the Canada Revenue Agency to clarify the Income Tax Act or bring it line with changes to the federal act.

Under amendments to the Revenue Act, tobacco tear tape manufacturers will now be regulated and markings on tobacco packaging will be enhanced.

The grant in lieu of taxes payable under the Municipal Grants Act related to student residences of supported institutions is increased from 40 to 50 per cent of full property taxes.

An amendment to the Agriculture and Marketing Act will change the financial year-end for Nova Scotia agricultural societies to Oct. 31 unless they prescribe a different date in their bylaws.

The schedule to the Provincial Finance Act that sets out government units and government business enterprises is also updated and revised.