Nova Scotia Presents Budget

Nova Scotia Finance Minister Graham Steel spent much of 2010 conducting pre-budget consultations with interested residents, groups, organizations and business leaders. The result is a "back to balanceî plan with a target of 2013-2014 to eliminate the deficit. A program of disciplined spending with few across the board cuts has been implemented. Cost-reduction measures such as downsizing the civil service by 10% and eliminating "March Madnessî spending by departments at the end of the fiscal year will also improve the bottom line.

The government of Nova Scotia surpassed projections by ending the past year with a surplus of 447.2 million, allowing a net debt reduction of 37.8 million. This can be attributed in part to one-time revenues from other years, but spending constraints played a role as well. The government has planned for a 389.6 million deficit this year as it holds the line on the health budget with its "Better Care Soonerî plan. Health and Welfare cost increases will be limited to 1.2%. It plans to focus on economic growth with its "jobsHereî strategy, encouraging productivity, innovation, co-operative education opportunities, small business lending and international commerce. Students will be pleased to learn that a maximum "debt capî of $28,560 is being implemented, and the popular Graduate Retention Rebate will continue. However, declining enrolments means that grants to regional school boards has been cut by 1.67%, although the per-student funding is increased. Grants to universities have been cut by 4% along with a 3% cap on tuition increases.

A reduction in the small business corporate tax rate from 4.5 to 4% has been announced, effective January 1, 2012; this applies to the first $400,000 of taxable income. On July 1, 2011, the Large Corporations Tax on capital of non-financial institutions falls to 0.05% from 0.10% and it will be eliminated on July 1, 2012. In December, 2010, the province announced that it had removed the total production costs cap for the Film Industry Tax Credit, allowing producers to claim 50-65% of eligible Nova Scotia labour.