Back to Balance is Working, Op-ed

The following is an op-ed piece by Finance Minister Graham Steele.

On April 5, 2011, I introduced the second budget in a four-year plan to get Nova Scotia's finances back to balance.

That plan is on track and it's working.

The stronger the province's finances, the stronger our ability to deliver important services like health care, education, social services and roads.

When we came to office in 2009, we learned the true state of Nova Scotia's financial situation. Independent analysis confirmed that we were on a path to a $1.4 billion deficit by 2013. This path was not sustainable.

Last year, I undertook the most extensive financial consultation in the province's history.

What I heard during those consultations forms the backbone of the four-year Back to Balance plan I introduced last year. We will get back to balance in 2013. We will put more emphasis on restraining spending than on raising revenue. And, we will continue to protect the services Nova Scotians depend on.

This year, during my pre-budget tour, the message I heard clearly was "stick to the plan," so we will.

There are a few people who say "cut, cut, cut." Others say "spend, spend, spend." Both approaches are wrong. The right approach is the one we're taking -- prudent, thoughtful, reasonable, and balanced. We understand that every program and every community has unique opportunities and challenges.

I'm pleased to say that we're restoring some sense to the province's books.

We spent less than we budgeted. For the second year in a row, the province's spending for 2010-11 is forecast to be below what was estimated at the beginning of the year. This is the first time in 23 years that has been achieved back-to-back.

These savings, one-time payments, and higher than expected revenues resulted in the province forecasting a surplus of $447-million.

Unlike previous governments who spent surpluses before closing the province's books at year-end, this government took the view that "a penny saved is a penny saved." We chose to use this surplus to reduce debt. We paid all of our 2010-11 capital commitments, and eliminated the need to borrow more than $600 million.

As well, the government had enough left over to reduce the net debt of the province by $37.8 million. This will be only the seventh time in the past 50 years that Nova Scotia has reduced its net debt. Today, Nova Scotia's net debt is $13.068 billion, which is almost $1 billion less than expected.

As we enter the new fiscal year, the government will continue to show sustained discipline on departmental spending, but that doesn't mean we will not invest in areas that are critical to moving this province forward.

We will do everything we can to grow the economy and create good jobs. This year's budget puts a strong emphasis on our jobsHere strategy, investing in our workforce, innovation and global competitiveness, so that Nova Scotia's economic future doesn't look like its past.

This budget supports Better Care Sooner -- our plan to improve emergency health-care in Nova Scotia -- with a commitment to open at least four Collaborative Emergency Centres this year.

We are introducing programs, funding support and tax measures to help families, students and seniors make ends meet. We are fixing Canada's weakest student assistance system and reducing taxes for small businesses.

By the end of the year, we are forecasting a deficit of $389.6 million, almost exactly where we expected to be when we laid out the Back to Balance plan.

If we stick to our plan, work hard, and show sustained discipline, the province's finances will continue to improve. As the province's finances improve, more good things are possible.

I encourage you to take a closer look at Budget 2011. You can find budget documents, fact sheets and other material at www.gov.ns.ca .