Government Introduces Seventh Consecutive Balanced Budget

Nova Scotia's seventh consecutive balanced budget was tabled at Province House today, April 29, by Finance Minister Michael Baker.

The $8.4-billion budget confirms government's commitment to debt management and includes measures to ensure Nova Scotia is the best place in which to live, invest, raise a family and do business.

"This budget keeps the priorities of Nova Scotians in mind, and our fiscal house in order," said Mr. Baker. "Our spending choices are strategic, they are good for Nova Scotians, and they will help secure a bright future for our province."

Total revenues for 2008-09 are estimated to increase by $448.2 million to $8.466 billion, mainly as a result of income tax, HST, and offshore petroleum revenues.

Expenses are estimated to increase by $392.8 million to $8.333 billion, with targeted investments in economic development, post-secondary education, health care, crime prevention and infrastructure.

Nova Scotia's economy has experienced moderate growth in the past year, and real GDP growth is expected to stay flat at 1.7 per cent for 2008. This underscores the importance of sticking to the province's fiscal plan.

The province's forecasted surplus of $189.7 million will go to the debt, and at least 70 per cent of potential Crown Share dollars owed to Nova Scotia, for the years up to and including 2007-08, has been committed to debt reduction. In 2008-09 and beyond, any funds attributed to Crown Share will also go toward the debt.

"We remain committed to reducing the debt," said Mr. Baker. "It's not an easy thing to do, given the range of priorities of Nova Scotians, but it will be worth it in the long term."

Debt-servicing costs have dropped significantly, thanks to government's commitment to debt reduction. In 1999, 18 cents out of every dollar went to servicing the debt. This coming year it will be down to 10.7 cents per dollar.

The province of Nova Scotia will hold the line on corporate taxes, proceed with promised tax reductions and introduce new tax relief in 2008 and 2009. These measures will save Nova Scotians $97 million in 2008 and $138 in 2009.

A new Transit Tax Credit will encourage Nova Scotians to use public transit, and the Healthy Living Tax Credit for sport and recreational activity registration fees will be extended to all Nova Scotians.

Government has also revamped the measures necessary to help Nova Scotians stay warm in the winter months.

Changes made to the Your Energy Rebate program will limit the rebate on electricity to the portion of electricity used to heat homes. This means a cost reduction of roughly $28 million. Government will use part of that savings to introduce the Heating Assistance Rebate Program, a new $10-million program targeted to help low-income Nova Scotians struggling to heat their homes.

In other areas, a further investment of $18.6 million (of which $10.7 million is provincial funding) will bring broadband high-speed Internet access to every area of the province by the end of 2009. New dollars for economic development will stimulate research, development and innovation within small and medium-sized business.

An additional $1.5 million will help manage the increase in provincial inmate population, while $8.2 million will help to hire 70 additional police officers this year.

Investments in education, including a recent $180 million commitment to freeze tuition, will bring the cost of education for Nova Scotians to the national average by 2010.

A new investment of $2 million will help revitalize rinks and arenas around the province.

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