- Marc Desormeaux, Principal Economist • Kari Norman, Economist
Nova Scotia: Budget 2024 - More Population Outperformance Drives More Spending
Nova Scotia’s (NS) fiscal year 2024–25 (FY2025) budget again increased spending plans and continues to expect red ink for the foreseeable future.
Although new spending and infrastructure investments will put upward pressure on the debt burden, this is arguably necessary given the strength of recent and projected population growth. And a boost to the province’s forecast net debt-to-GDP ratio versus last year’s plan partly reflects historical revisions to GDP data.
Spending measures were concentrated in the healthcare sector, while the province will also increase its personal income tax brackets and basic personal tax amount according to the rate of inflation.
Borrowing requirements are now expected to total $2.6B in FY2025, $3.4B in FY2026, $2.0B in FY2027, and $2.6B in FY2028.