First 2021-22 Budget Update

The first update on Budget 2021-22 shows government’s commitment to making key investments in priority areas, such as health care, roads, students and seniors.

Finance and Treasury Board Minister Allan MacMaster presented the update today, September 29. Government is forecasting a deficit of $444.5 million for the 2021-22 fiscal year, a $140.4 million change from the $584.9 million deficit presented in March.

“We’ve heard from Nova Scotians, and they’ve given government a clear mandate,” said Minister MacMaster. “Now is the time to take action and make investments that will improve the lives of Nova Scotians across our province.”

Additional appropriations totalling $423.7 million are required for 16 departments and offices. Most of those expenses are related to the COVID-19 pandemic response and new funding for federally recoverable programming.

As part of the update, Minister MacMaster also announced that government will be paying the bonds related to the Cobequid Pass toll highway early. This is the first step to fulfilling government’s commitment to remove the tolls. The Department of Public Works will immediately begin further planning for their removal.

Additionally, Minister MacMaster announced that government will invest $32 million in a new Seniors’ Care Grant. The program will provide support to help seniors stay in their homes. More information about the program will be announced in the coming weeks.

The Province is also investing $2.3 million in the education system, putting a priority on student and staff health and well-being with three new initiatives: the Healthy School Fund, a diversity-centred teacher professional development program and a commitment to provide every classroom in Nova Scotia with a mental health resource kit.

In total, government is investing more than $80 million in programs and initiatives to support key priorities identified in ministers' mandate letters.

Quick Facts:

• total revenue is projected to be $12.19 billion, up $406.8 million from budget, mainly due to an increase in personal income tax, a one-time increase to the Canada Health Transfer and a one-time increase in federal funding for the Offshore Accord
• departmental expenses are projected to be $11.91 billion, up $397.1 million from budget, mainly due to the COVID-19 pandemic and new funding for federally recoverable programming

Additional Resources:

September forecast update: https://beta.novascotia.ca/budget-forecast-updates

Budget 2021-22: https://novascotia.ca/budget/