It's Status Quo

The federal budget announced today, Feb. 26 will have little impact on Nova Scotia.

"After seeing the federal budget, it's obvious that the big story of the night is the premier ringing the bell at the stock exchange in New York," said Finance Minister Michael Baker. "There's not a lot here for Nova Scotia."

The federal government continued to emphasize direct funding for individuals and institutions, rather than for provinces.

"This confirms what we've been saying -- we have some tough challenges ahead in our own budget," said Mr. Baker.

Today's budget showed that federal revenues to Nova Scotia are soft, and national economic growth is slower than it has been.

"If the federal government has to be cautious, in their very positive situation, then we have our work cut out for us in Nova Scotia," said Mr. Baker. "We have some tough choices to make in the weeks ahead."

There are several positives in the budget: the federal government has provided some certainty to municipalities about future gas tax funding; Nova Scotians will also benefit from the Public Transit Capital Trust Fund; and the adjustment to the earned exemption in the Guaranteed Income Supplement will help many Nova Scotians.

Another positive initiative is the police officer's recruitment fund which is estimated at $2.2 million a year over three years to the province.

Nova Scotians will, like all Canadians, benefit from the tax free savings accounts.