Nova Scotia’s finance minister says the province is expected to end its fiscal year in the red, but the projected size of the deficit for 2022-23 will be smaller than expected.
Allan MacMaster made the prediction today as he presented a budget update that forecasts a deficit of $142.6 million for the fiscal year, which is a $363.6-million improvement from the deficit predicted in March when the budget was introduced.
MacMaster issued a statement saying the better-than-expected outlook is based on strong economic activity, which has helped increase the province’s revenue by $1.3 billion.
Most of that extra money came from higher-than-expected revenue from corporate and personal taxes, and the harmonized sales tax.
The minister acknowledged this is a difficult time for many Nova Scotia families, given the rising cost of living and high interest rates.
He says the province’s “stronger-than-expected economic activity” has allowed the provincial government to provide more support to people in need, while also increasing investments in health care, housing and infrastructure.
Departmental expenses are projected to be $13.4 billion, which is $949.5 million more than estimated in March. As well, additional spending totalling $768.4 million are required for 16 departments.
This report by The Canadian Press was first published Dec. 20, 2022.
