Province Projects Deficit in Budget

Finance Minister Graham Steele says the province's 2009-10 budget will have a deficit in the range of $590 million.

"This is a very significant deficit for 2009-10," Mr. Steele said in a speech to the Halifax Chamber of Commerce today, Sept. 14.

"However, this is a truer picture of the province's finances than presented in the May 4 budget."

The budget will be released next week. Mr. Steele said it will be mostly the same as the May 4 budget, which was not passed by the legislature.

Departments are already halfway into annual operating budgets, and it is too late to make major changes to programs and services, he said.

However, the budget will update and adjust overall estimates for expenses and revenues, based on more realistic projections. The May 4 budget projected a surplus.

Savings have been found to fund current government priorities. The province will also budget for the remaining funding for universities to 2011 under an agreement signed by the previous government.

Mr. Steele said the province is working on a long-term fiscal plan to be implemented in the coming months.

"Despite the challenges before us, we have not given up on our goal to balance the 2010-11 budget," he said.

FOR BROADCAST:

Finance Minister Graham Steele will present a deficit

of 590-million-dollars in the budget next week.

Steele told the Halifax Chamber of Commerce today

(September 14th) the 2009-2010 deficit number is

significant, but represents a truer picture of the

province's finances compared to the budget presented on

May 4th.

Budgets for programs and services will remain largely

the same, given that departments are already halfway into

annual operations.