Second 2021-22 Budget Update

The second update on Budget 2021-22 shows signs that Nova Scotia’s overall economy has been recovering despite continued uncertainty caused by the COVID-19 pandemic. This better-than-expected economic performance has had a positive impact on revenue, allowing the government to make investments in its priority areas.

Finance and Treasury Board Minister Allan MacMaster presented the update today, December 21, which forecasts a surplus of $108.2 million for the 2021-22 fiscal year. This is a $693.2-million change from the $584.9-million deficit presented in March and a $552.8-million change from the September forecast.

“With the recent increase in case numbers and the Omicron variant, we know that Nova Scotia, like the rest of the world, is still in a period of uncertainty,” said Minister MacMaster. “Although revenues were much higher than we expected, prudent fiscal management will allow us to continue to fight the pandemic and rebuild our economy by investing in key areas like healthcare, seniors, housing and the environment.”

Finance and Treasury Board provides budget updates to the public three times a year in September, December and as a final forecast with the following year’s budget. The final report on the budget is presented through public accounts in the summer.

Quick Facts:

• total revenue is projected to be $12.8 billion, up $1.0 billion from budget, mainly due to higher personal income tax, HST revenues, Canada Health Transfer and Offshore Accord payments, as well as one-time prior year adjustments of $349.1 million
• departmental expenses are projected to be $11.9 billion, up $429.2 million from budget, mainly due to the COVID-19 pandemic and additional investments in government priority areas
• additional appropriations totalling $97.1 million are required for seven departments and offices

Additional Resources:

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

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