HALIFAX — A provincial budget update for Nova Scotia is estimating a smaller deficit for the 2021-22 fiscal year.
Officials are now projecting a deficit of $445 million, down from the forecast of $585 million presented in the March provincial budget.
The $140 million improvement on the deficit is due in part to a projected increase in total revenue to $12.1 billion, up from $11.7 billion forecast in March, according to officials.
Revenues are expected to get a boost from what officials project will be higher compensation for employees, resulting in more personal taxes paid to the province.
Along with the shrunken deficit, Finance Minister Allan MacMaster told reporters Wednesday the province was planning on paying the bonds related to the Cobequid Pass highway early. He said this is the first step in eliminating the $4 toll drivers pay to use the highway — a task Public Works Minister Kim Masland was given by new Premier Tim Houston earlier this month.
MacMaster announced just over $80 million in new spending, with the largest amounts going to initiatives in the health and municipal affairs departments.
He said $32 million will go to the new Senior’s Care Grant, which is aimed at helping the province’s elderly stay in their homes.
Another $32 million will be spent to increase grants given to municipalities whose service costs exceed their ability to pay for the services.
As the new government moves into budget planning, the finance minister said a key challenge remains dealing with the cost of the COVID-19 pandemic.
"Since the budget, we are seeing some signs of economic recovery, but the pandemic continues to have an impact on our economic certainty ... we'll certainly be watching every dollar that goes out the door," MacMaster said.
"Even though we're in the middle of a fiscal year, it's time for us to start putting our stamp on this new government."
This report by The Canadian Press was first published Sept. 29, 2021.
— — —
This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.
The Canadian Press
