Nova Scotia’s finance minister has tabled a budget with a $1.2-billion deficit and cuts to the public service.
John Lohr projects that the deficit for the 2026-27 fiscal year will be slightly smaller than the $1.25-billion deficit the province will end the current fiscal year with.
The budget says the province’s population growth is expected to slow considerably over the next two years, but the government projects that its economic growth should be relatively stable.
Real GDP growth in 2026 is projected to be 1.5%, down from 1.8% in 2025.
Lohr’s $18.9-billion budget makes 5% cuts to the civil service every year for four years, and 3% cuts over the same period for the broader public service including in health care and education.
Nova Scotia’s net debt is forecast to grow by $5.5 billion in the 2026-27 fiscal year, for a total of $27.9 billion.
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Here are some highlights:
- Total spending is forecast to be $18.9 billion, with a projected deficit of $1.19 billion.
- The budget includes a four-year plan to contain expenses, including a 5% yearly cut in the civil service and a 3% cut in the broader public service, including Crown corporations. The government says the cuts will save about $95 million.
- The province intends to reduce grants to organizations by $130.4 million in an effort to rein in spending.
- Health spending rises to more than $6.7 billion, which accounts for 35.5% of the overall budget.
- A total of $1.2 billion in capital investment for the Halifax Infirmary expansion project and Cape Breton Regional Municipality health-care redevelopment project.
- $144.5 million for construction and renewal of other hospitals and medical facilities in Amherst, Yarmouth, Bridgewater and the IWK in Halifax.
- $47.5 million to hire more paramedics and emergency medical responders, and $47.1 million to pay family doctors who take on shifts in long-term care, hospitals and emergency departments in rural facilities.
- $681.2 million toward a number of measures including keeping tax brackets indexed; increasing basic personal and age amounts; maintaining HST at 14%; and continuing the energy rebate program. The government says these measures will save an average Nova Scotian family more than $1,400 in 2026-27.
- $873.8 million toward the plan to build 5,700 new and replacement long-term care spaces by 2032, with seven more facilities expected to open this year.
- Net debt is expected to be $27.9 billion in 2026-27, which reflects capital investments in the coming year and the anticipated budget deficit.