Liberals stick to playbook with first $9.9-billion budget
Finance Minister Diana Whalen said earlier this week that the provincial budget would contain few surprises and she lived up to that promise Thursday.
Whalen introduced a $9.9-billion budget with a $279-million deficit. The document contains a collection of announcements from the Liberals election campaign platform, as well as some new initiatives, with about $80 million in new spending. Department spending increased overall by 5.4 per cent, or $455 million.
The net debt is estimated to be $14.6 billion as of March 31. Its projected to top $15 billion in the next fiscal year.
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The numbers say what Nova Scotians already know: the status quo isnt working, Whalen said. The hard truth is that we have significant challenges and a steep hill to climb.
Much of the department spending resulted from increased service pressures as well as negotiated wage increases, said Whalen. The minister said there would need to be a new approach to wage agreements, which cost about $50 million per percentage increase.
We just cant afford those kind of pressures, she said. We all need to work together to recognize we have a problem and together we can fix it. When things improve, we can offer bigger increases.
The Liberals are hanging a lot of importance on a review of taxes, regulations and fees that wont be complete until autumn. As such, Whalen said more significant changes would come in future budgets.
As for whats in this one, the majority of new spending focuses on education and health.
The Liberals will spend $32.6 million on home-care support, $10.6 million on doctor recruiting and training with a focus on rural areas, and $1.9 million for improved access to oncology and other drugs.
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