N.S. government again ups deficit in fall forecast, but fears this time may come true

In what’s go a September signifier successful Nova Scotia politics, the province’s concern curate is again projecting a bigger shortage than anticipated successful his outpouring budget.

However, dissimilar what’s occurred successful the past 2 years, Finance Minister Allan MacMaster says he’s disquieted that the travel of reddish ink won’t beryllium reversed by higher-than-forecast revenues arsenic the twelvemonth progresses.

MacMaster announced contiguous the shortage forecast for 2024-25 has accrued $187 cardinal to $654 cardinal connected his $16.7 cardinal budget, owed to higher section spending and a slowing travel of taxation revenue.

The concern curate says that this twelvemonth he’s a spot tense astir the trends, arsenic taxation revenues are forecast to beryllium astir $70 cardinal little than anticipated successful the outpouring budget.

The curate says the softening of revenues is simply a “small but … notable” trend, and his officials volition beryllium cautiously observing much elaborate taxation information expected successful November.

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The forecast besides includes astir $243 cardinal much successful spending than forecast, including measures that weren’t announced oregon anticipated successful the outpouring budget.

The provincial authorities has overestimated its shortage by wide margins successful caller years and has made a fig of spending announcements extracurricular the outpouring fund process — drafting critiques from the auditor wide for spending nationalist wealth without the aforesaid legislative oversight that the fund receives.

This study by The Canadian Press was archetypal published Sept. 27, 2024.