Government Re-introduces Fifth Consecutive Balanced Budget

Finance Minister Michael Baker tabled the government's fifth consecutive balanced budget at Province House today, July 4 -- bringing in substantially the same budget that was introduced on May 9.

The province's $6.9-billion budget features the same program investments and tax breaks as previously introduced, including the eight per cent rebate on a wide range of fuels used for residential heating and basic electricity, starting in January 2007.

"We remain committed to making life better for Nova Scotia's families, communities, and businesses," said Mr. Baker. "We will continue to put our plan into action by investing in ways that will make a difference to Nova Scotians."

Slight variations in revenue and economic figures have occurred since the budget was first introduced in May. The updated figures are provided in the 2006-07 Nova Scotia budget addendum.

Revised estimates indicate that revenues will increase by $1.5 million. A slightly larger provincial surplus of $73.5 million is also expected.

Net program expenses remain largely unchanged, with the exception of the legislative services appropriation, which has increased by $8.3 million to $31.9 million, to cover the cost of election-related expenses.

Debt-servicing costs are expected to be $8.4 million lower than originally estimated due to a reduction in the interest relating to the province's long-term debt.

"Good financial management is still the bottom line, and we are always mindful of our debt reduction plan," added Mr. Baker. "We're in a good financial position this year, so we're making strategic investments that will pay off in the long run and build a brighter future. This is the right thing to do."

The first 2006-07 forecast update will be available before the end of September, as is the case each year.

For more information on the 2006-07 budget and for a budget update fact sheet see the website at www.gov.ns.ca/finance/budget06/ .