N.S. Liberal budget opens spending taps as province faces flattening economy

HALIFAX — Nova Scotia’s Liberal government is opening the spending taps on infrastructure in its fifth consecutive balanced budget, as economic growth is expected to drop sharply this year.

The 2020-21 budget tabled today features $11.5-billion in spending with a modest surplus of $55-million and a record capital plan of just over $1-billion for schools, highway twinning and hospital renovations and redevelopment.

The government is adding $54.3-million more to the Community Services Department budget, mainly aimed at increasing access to child benefits and raising the limits for housing expenses in welfare programs.

Businesses are receiving a tax break with a reduction in the corporate and small business taxes at a combined cost to the province of just over $80-million.

And as it continues its campaign to warn of the health risks associated with vaping, the government will tax vaping products beginning in September.

Premier Stephen McNeil’s government is adding to spending amid projections of a sharp drop in annual economic growth, from last year’s 1.9 per cent, to 0.4 per cent in 2020.

This report by The Canadian Press was first published Feb. 25, 2020.

The Canadian Press