N.S. budget deficit is growing as tax revenue, offshore royalties drop
HALIFAX — The latest deficit forecast for Nova Scotia has grown to $241.2 million for the 2015-16 fiscal year, up by $118.6 million from the last government prediction.
It’s the second time the deficit has been projected to jump this year. The government was forecasting a shortfall of $97.6 million in the spring budget.
It says a drop in tax revenue and offshore royalties are driving up the deficit.
Finance Minister Randy Delorey says the provincial government has made progress on keeping spending in check, but the latest budget figures show how vulnerable Nova Scotia is to negative swings in revenue.
“As finance minister, I would love to be able to invest more in areas that matter to Nova Scotians — new and improved schools, state-of-the-art hospitals, better programs for seniors and those in need,” he said in a statement. “Quite frankly, we can’t get there if we don’t stick to a fiscal plan that matches our programs and services to our ability to pay.”
Total revenues for 2015-16 are forecast to be $9.8 billion, down $135 million from when the budget was released.
Progressive Conservative leader Jamie Baillie said Monday’s financial statement shows the government’s fiscal plan isn’t working.
“While Nova Scotians are struggling to pay the bills or moving away, the Liberals are drowning in red ink and random cuts. Nobody wins,” he said in a news release. “We need a real plan from the Liberal government to spur economic growth and create jobs.”
The government says forecasted real GDP growth is now at one per cent for 2015, down from 1.7 per cent. Real GDP growth in 2016 has also been reduced to 0.8 per cent from 1.5 per cent.
