Nova Scotia Deficit Forecast to Hit $1.44 Billion as Spending Outpaces Revenue
A new provincial budget update predicts Nova Scotia's deficit will reach $1.44 billion, driven by spending that exceeds revenue projections. The province expects to spend approximately $19.2 billion this fiscal year, while revenues are projected at roughly $17.4 billion. Significant overspending occurred in the previous fiscal year, particularly in health and long-term care sectors.
Nova Scotia’s provincial deficit is forecast to rise to $1.44 billion, according to a budget update released on Thursday. The projection highlights a continuing trend where government spending outpaces revenue.
For the current fiscal year, the province expects to spend roughly $19.2 billion. This figure represents an increase of $208 million from the originally budgeted amount. On the revenue side, projections stand at approximately $17.4 billion, which is $2.8 million higher than initially estimated.
The latest update follows a period of significant fiscal imbalance. In the previous fiscal year, which ended on March 31, 2026, the province spent $1.9 billion outside its budget. This excess spending accounted for almost 10 per cent of overall expenditures. Twelve government departments exceeded their budgets during that period.
Health and long-term care were among the most affected areas. The Department of Health and Wellness spent $384.6 million over budget last year, while Seniors and Long-Term Care exceeded its allocation by more than $75 million. Finance officials attributed these recent overspending trends to increased patient access to care, higher staffing levels, and rising salaries within the health and long-term care sectors.
The next budget update is scheduled for December.