Overview: More money in, more to spend
CBC News Online | April 26, 2005

The minority Conservatives are going on a spending spree, thanks in part to new deals with the federal government.

• Province of Nova Scotia: Budget 2005
  

Through new health care, equalization and offshore funding agreements, the province expects about $259 million extra from Ottawa this year.

Provincial revenues are also up about $250 million, mainly due to increases in personal and corporate income tax revenues.

And the Conservatives are spending the new money, while they boast about a fourth consecutive balanced budget at the same time.

There’s $418 million more earmarked for all programs, up eight per cent over last year. Of that, more than half -- $218 million -- is going to health.

For health programs, spending is up 9.3 per cent over 2004-05. This is to reduce wait times, recruit doctors and nurses, and pay for programs like home care.

Education is the second biggest spending area. Funding is up a total 7.1 per cent for public schools, community college and universities.

There's also money in this budget to help less fortunate Nova Scotians.

The shelter allowance for those receiving social assistance will increase by $50 a month. And personal allowance payments to about 20,000 people getting welfare payments will increase by a total of $4.6 million.

Roads

There’s a $30-million fund to repair secondary roads around Nova Scotia. In addition, there’s $14 million to maintain the 100-series highways.

Twinning projects on highways 101 and 103 will continue. Highway 101 will be twinned from St. Croix to Avonport,; Highway 103 from Otter Lake to Tantallon. Most of this work has already started.

The Conservatives are also promising help for another transportation route: the Cape Breton railway.

There’s a $1.5-million increase in the government’s subsidy to keep the island’s railway running until at least 2009.

Taxes

The Conservatives are not introducing any new personal or corporate taxes. There is no mention of tax cuts for individuals, like the 10-per-cent cut granted two years ago that the Tories ended up rescinding.

Businesses across Nova Scotia will see small reductions in their tax loads.

About 1,400 large corporations in the province will pay about $4.5 million less next year. Small businesses will pay about $1.25 million less. The Conservatives are also getting rid of the business occupancy tax for small businesses.

There is a new healthy living tax credit. The $150 tax deduction works out to a cash savings of $15 on registration fees for children in sports.

Debt

As for the debt, the Conservatives are repeating their promise to put all of the $830-million upfront payment from the offshore revenue deal with Ottawa, which they expect to get in September, on the debt.

All but $2 million of a forecast surplus of $63.3 million next year will also go to the debt.

 

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