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Government Spending and Borrowing Plan

Full Title:
Appropriations Act, 2025

Summary#

  • This bill sets Nova Scotia’s budget for the fiscal year from April 1, 2025 to March 31, 2026. It authorizes how much each department can spend and lets the province borrow money to run services and build things.

  • It allows up to about CAD $19.7 billion in spending across government and up to CAD $3.1 billion in long‑term borrowing.

  • Key points:

    • Biggest allocations go to Health and Wellness; Education and Early Childhood Development; Opportunities and Social Development; Seniors and Long‑term Care; and Capital Purchases (buildings, equipment, and other assets).
    • About $909 million is set aside for debt servicing (interest and related costs on provincial debt).
    • $200 million is reserved for contingencies (unexpected needs).
    • $148 million funds refundable tax credits for people and businesses who qualify under existing laws.
    • Separate funding supports areas like emergency management, justice, public works, agriculture, fisheries, environment, and digital services.

What it means for you#

  • Residents and families

    • Health care, hospitals, and clinics continue to be funded, including mental health and addictions services and efforts to recruit health workers.
    • Schools and early learning programs have funding for the year.
    • Seniors’ care, including long‑term care, has dedicated funding.
    • Social supports and income assistance programs are funded through Opportunities and Social Development.

  • Workers and businesses

    • Funds for labour, skills, and immigration support training and workforce programs.
    • Economic development and “Growth and Development” funding support jobs and business activity.
    • If you qualify for refundable tax credits, money is set aside to pay them.

  • Drivers, commuters, and communities

    • Public works and capital purchases fund roads, public buildings, and major equipment.
    • Municipal Affairs funding supports town and city services.
    • Emergency Management funding supports preparedness and response.

  • Environment and natural resources

    • Environment and Climate Change, Energy, Natural Resources, Agriculture, and Fisheries have operating funds for regulation and programs.

  • Rights, justice, and transparency

    • Justice, Public Prosecution Service, and the Police Complaints Commissioner are funded to keep the justice system running.
    • Human Rights Commission and the privacy review office have operating funds.

  • Taxes and debt

    • The bill does not set tax rates.
    • It allows the province to borrow up to $3.1 billion long‑term, which adds to debt and future interest costs. The budget includes money to pay interest this year.

Expenses#

  • Estimated annual cost: about CAD $19.7 billion.

  • Notable allocations:

    • Health and Wellness: $5.98B
    • Education and Early Childhood Development: $2.23B
    • Opportunities and Social Development: $1.68B
    • Seniors and Long‑term Care: $1.46B
    • Capital Purchase Requirements (major assets/projects): $1.87B
    • Public Works (transportation and infrastructure operations): $0.84B
    • Debt servicing (interest and related costs): $0.91B
    • Restructuring costs: $0.55B
    • Contingency (unexpected needs): $0.20B
    • Refundable tax credits: $0.15B

  • Borrowing authority:

    • Up to $3.1B in long‑term borrowing to finance public services and projects.

Proponents' View#

  • Keeps core services running by setting clear budgets for health care, schools, seniors’ care, roads, and public safety.
  • Targets large, visible needs, especially health care and seniors’ care.
  • Funds capital projects that can improve hospitals, schools, roads, and digital systems.
  • Sets aside a contingency so the province can respond to emergencies without delay.
  • Borrowing authority provides flexibility to manage cash flow and spread big project costs over time.
  • Pays for refundable tax credits owed to people and businesses who qualify.

Opponents' View#

  • Total spending is high, and the added borrowing could grow provincial debt.
  • Interest costs are large (about $909 million), which may leave less money for services in future years.
  • Big lines like “Capital Purchases,” “Restructuring Costs,” and “Contingency” may feel broad, with limited detail on specific projects or outcomes.
  • The bill does not show program‑level changes or performance targets, making it hard to judge results.
  • Reliance on borrowing may raise concerns about long‑term affordability if the economy slows or revenues fall.