Province Issues Budget Forecast Update

The province has released its first budget forecast update for 2007-08, showing a slightly lower surplus overall and minor changes in revenue and spending forecasts.

Nova Scotia's surplus is forecast to decrease by $3.1 million to $115.3 million, down from the $118.4 million in the March 2007-08 budget.

The government is continuing its commitment to debt reduction with a total of $113.8 million allocated to the debt. The forecast includes $68.2 million related to the offshore accord and an additional $45.6 million to satisfy the debt reduction commitment.

The province is now forecasting total revenues for 2007-08 of $8.01 billion, which includes net income from government business enterprises of $344 million. Total expenses are expected to be $7.93 billion.

"Although the surplus is down slightly, the government continues to meet its commitment on debt reduction," said Finance Minister Michael Baker. "The 2007-08 budget is on track and unfolding as expected."

Lower petroleum royalties, declining tobacco taxes and a slight increase in program spending are offset by lower pension costs and minor revenue increases.

Debt servicing costs are forecast to drop by $4.5 million from budget, while net program expenses will go up by $1.7 million.

The province continues to anticipate a 2.3 per cent growth in real gross domestic product in 2007, consistent with the budget forecast.

A copy of the forecast update is on the website at www.gov.ns.ca/finance .