{"id":495167,"date":"2026-02-24T00:35:10","date_gmt":"2026-02-24T00:35:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/495167\/"},"modified":"2026-02-24T00:35:10","modified_gmt":"2026-02-24T00:35:10","slug":"nova-scotia-budget-1-2b-deficit-and-tough-decisions-on-spending-cuts-halifax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/495167\/","title":{"rendered":"Nova Scotia Budget: $1.2B deficit and \u2018tough decisions\u2019 on spending cuts &#8211; Halifax"},"content":{"rendered":"<p>Nova Scotia\u2019s finance minister has tabled a budget with a $1.2-billion deficit and warns that difficult decisions will need to be made to balance the books, which has opposition leaders wondering how the province will weather the next few years, financially.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/70c8fc80.png\" alt=\"\" style=\"position:absolute;width:1px;height:1px\" referrerpolicy=\"no-referrer-when-downgrade\"\/><\/p>\n<p>The 2026-27 budget, which is titled \u201cDefending Nova Scotia,\u201d includes revenues of just over $17 billion and expenses of $18.9 billion.<\/p>\n<p>Finance Minister John Lohr says the province is focused on protecting core services for Nova Scotians, including $6.7 billion in health spending, which accounts for 35.5 per cent of the overall budget.<\/p>\n<p>\u201cI think that the reality is that we continue to focus on health care. We need to continue to focus on health care and we are convinced that this will pay dividends in the future,\u201d he told reporters Monday.<\/p>\n<p>In order to contain expenses, the budget include a five-per cent yearly cut in the civil service and a three-per cent cut in public service and Crown corporations \u2014 all of which is projected to save $95 million. Lohr said government had to make \u201csome tough decisions\u201d and they started by \u201clooking inward.\u201d<\/p>\n<p>Story continues below advertisement<\/p>\n<p>\u201cWe will work to ensure that core front-line services are protected and focused. Those reductions on management and administration, and we will manage through retirements and attrition as much as possible,\u201d he said.<\/p>\n<p>Some cuts have already started as the government announced last week it was closing three provincial museums as well as several tourist information centres.<\/p>\n<p>As well, the province will be reducing grants to organizations to the tune of $130.4 million.<\/p>\n<p>\n\t\t\tMore on Canada<br \/>\n\t\t\tMore videos\n\t\t<\/p>\n<p>\u201cThese are difficult decisions. We did not make them lightly. I know this will have a major impact on some organizations, and that will be hard. But these are decisions we had to make in order to protect the core services Nova Scotians rely on.\u201d<\/p>\n<p>\t\t\t\t\t<img decoding=\"async\" width=\"170\" height=\"225\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/1767930311_275_national.jpg\" alt=\"For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.\"\/><\/p>\n<p>\t\t\t\t\tGet breaking National news<\/p>\n<p>For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.<\/p>\n<p>But opposition leaders argue government\u2019s decisions are harming Nova Scotians.<\/p>\n<p>\u201cWhat we see are cuts across the board and increases in ministerial and political budgets to help them manage this storm. This is completely unacceptable,\u201d said NDP Leader Claudia Chender<\/p>\n<p>\u201cAcross the sectors that are most valuable to Nova Scotians are traditional industries, our arts and culture, our science, our management. We see massive cuts and no explanation of where we will get back to balance.\u201d<\/p>\n<p>She went on to say that Houston\u2019s PC government inherited a balanced budget and an \u201cunprecedented amount of revenue\u201d in their five years in power, but alleges that the money has been \u201csquandered.\u201d<\/p>\n<p>Story continues below advertisement<\/p>\n<p>\u201cWhat we see today, five years later, is not many results. We don\u2019t see an improvement to people\u2019s cost of living. Power bills cost $400 more a month for the average family. Housing is out of control. And yet, we\u2019re told that Nova Scotians need to sacrifice,\u201d she said.<\/p>\n<p>\u201cWe are going to see job losses. We\u2019re going to be seeing significant losses to community programs \u2026 Nova Scotians do not deserve to pay for the mistakes that this government has made.\u201d<\/p>\n<p>Interim Liberal Leader Iain Rankin said the cuts in the budget will have ramifications.<\/p>\n<p>\u201cYou can\u2019t cut 20 per cent of the government and expect no impacts to services,\u201d he said.<\/p>\n<p>\u201cIt\u2019s not waste that they\u2019re cutting here. These are Nova Scotians working on important policy and it will impact services undoubtedly.\u201d<\/p>\n<p>Rankin went on to say government has backed themselves into a corner despite the fact the economy is growing.<\/p>\n<p>\u201cThey\u2019re reducing the public service and they are reducing services, ultimately.\u201d<\/p>\n<p>\n\t\tTrending Now\n\t<\/p>\n<p>\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11678708\/nexus-global-entry-shutdown-canada-airports-us-partial-shutdown\/\" class=\"c-posts__inner\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-posts__thumbnail\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/1771893310_6_20221016161044-634c6d45bc6175ce5fb6927djpeg-2.jpg\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/><\/p>\n<p>\n\t\t\t\t\tVancouver airport ties Nexus outage to U.S. partial government shutdown\n\t\t\t<\/p>\n<p>\t\t\t<\/a><\/p>\n<p>\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11679229\/us-judge-bars-release-trump-document-report\/\" class=\"c-posts__inner\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-posts__thumbnail\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/1771893310_785_donald-trump.jpg\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/><\/p>\n<p>\n\t\t\t\t\tU.S. judge permanently bars release of report on Trump document case\n\t\t\t<\/p>\n<p>\t\t\t<\/a><\/p>\n<p>The budget says the province\u2019s population growth is expected to slow considerably over the next two years, but the government projects that its economic growth should be relatively stable.<\/p>\n<p>Real GDP growth in 2026 is projected to be 1.5 per cent, down from 1.8 per cent in 2025.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>Nova Scotia\u2019s net debt is forecast to be $27.9 billion at the end of the 2026-27 fiscal year, and the province\u2019s net debt-to-GDP ratio is expected to be 39.4 per cent.<\/p>\n<p>Budget highlights<\/p>\n<p>\u2014 Total spending is forecast to be $18.9 billion, with a projected deficit of $1.19 billion.<\/p>\n<p>\u2014 The budget includes a four-year plan to contain expenses, including a five per cent yearly cut in the civil service and a three per cent cut in the broader public service, including Crown corporations. The government says the cuts will save about $95 million.<\/p>\n<p>\u2014 The province intends to reduce grants to organizations by $130.4 million in an effort to rein in spending.<\/p>\n<p>\u2014 Health spending rises to more than $6.7 billion, which accounts for 35.5 per cent of the overall budget.<\/p>\n<p>\u2014 A total of $1.2 billion in capital investment for the Halifax Infirmary expansion project and Cape Breton Regional Municipality health-care redevelopment project.<\/p>\n<p>\u2014 $144.5 million for construction and renewal of other hospitals and medical facilities in Amherst, Yarmouth, Bridgewater and the IWK in Halifax.<\/p>\n<p>\u2014 $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.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>\u2014 $681.2 million toward a number of measures including keeping tax brackets indexed; increasing basic personal and age amounts; maintaining HST at 14 per cent; 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.<\/p>\n<p>\u2014 $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.<\/p>\n<p>\u2014 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.<\/p>\n<p>\u2014 with files from The Canadian Press<\/p>\n<p>\n\t\t&amp;copy 2026 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"Nova Scotia\u2019s finance minister has tabled a budget with a $1.2-billion deficit and warns that difficult decisions will&hellip;\n","protected":false},"author":2,"featured_media":495168,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3409,48,43,44,198689,198690,714,41,39,42,40],"class_list":{"0":"post-495167","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-budget","9":"tag-canada","10":"tag-headlines","11":"tag-news","12":"tag-nova-scotia-budget","13":"tag-nova-scotia-politics","14":"tag-politics","15":"tag-top-news","16":"tag-top-stories","17":"tag-topnews","18":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/495167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=495167"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/495167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/495168"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=495167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=495167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=495167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}