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[Member Publication Notice] Nova Scotia Budget | Newfoundland & Labrador Budget 2023/2024

Date: March 27, 2023

Nova Scotia's budget is in a deficit position for the second year in a row.
About 45% of total spending is related to health care measures.

The estimated deficit in 2023/2024 is $279 million, about 0.5% of nominal Gross Domestic Product (GDP). This is almost $20 million larger than the deficit forecast for 2022/2023.

Revenues are down mainly due to a large prior year adjustment (PYA) for taxes in 2022/2023. Expenses are up across several departments, notably Health and Wellness.

The government plans to increase deficits over the next three years to fund health care initiatives. It expects the deficit to improve in 2026/2027, the final year of the fiscal plan.

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Newfoundland & Labrador projects a $160 million deficit in 2023/2024 as health expenditures rise.
Modest surpluses are expected over the following few years.

The province ended last year with a $784 million surplus due to higher personal and corporate tax revenues and a jump in offshore royalties. The surplus will turn into a $160 million deficit in 2023/2024, about 0.4% of Gross Domestic Product (GDP). The province is increasing spending on health care and lower commodity prices will reduce corporate revenues from mining and oil companies.  

The government expects to return to small surpluses over the rest of the five-year forecast, but that assumes expenses remain relatively flat over the period. This may be a challenge given the increasing demands of health care for an aging population and expected growth from immigration. 

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