Nova Scotia Budget Remains on Track

The province's plan to make life better for Nova Scotia families is on track with overall government spending forecast to be below budget.

Finance Minister Maureen MacDonald released the first forecast update for the 2012-13 budget today, Sept. 25.

"Nova Scotians are looking to their government to keep a steady hand on the province's finances, and we're doing just that," said Ms. MacDonald. "At the same time, we continue to keep a watchful eye on global and domestic factors that impact our economy and our finances."

Nova Scotia's deficit is now forecast to be $249.3 million, an increase of $38.1 million from the budget estimate. This increase is almost entirely because $36.6 million of revenue received from the federal government will now be booked in a future year instead of this budget year. Excluding this accounting change, the actual difference in the deficit is $1.5 million.

The province did not require additional appropriations and departmental spending is forecast to be lower than budget.

"On a $9.5-billion budget, we are remarkably close to where we expected to be. The Back to Balance plan remains on track," said Ms. MacDonald. "Government is committed to spending restraint, as we've demonstrated by having expenses come in under-budget for three years in a row.

"At the same time, we're committed to improving the programs and services families count on by making innovative changes that result in better services at lower costs."

Forecast highlights include:

• Total revenues, including net income from government business enterprises, are forecast to be $9.2 billion, down $43.3 million from budget. This decrease is primarily from the revised treatment of convention centre funding.
• Total expenses, and consolidation and accounting adjustments, are forecast to be $9.5 billion, $5.2 million lower than budget.
• Departmental spending is forecast to be $6,000 lower than budget.
• Gross debt-servicing costs are forecast to remain unchanged from budget at $881.7 million.

Forecast update materials are available on the Department of Finance's website at www.novascotia.ca/finance/en/home/budget/forecastupdate.aspx .