Nova Scotia’s budget deficit has climbed to a record $1.29 billion, as government spending continues to grow faster than revenues amid ongoing economic uncertainty and global instability.
According to the province’s final fiscal update for the 2025 budget, revenues increased by $144.3 million, or 0.9 per cent, reaching approximately $16.6 billion. However, that gain was overshadowed by a sharp rise in expenses, which grew by 4.1 per cent, or $721.6 million, bringing total expenditures to $18.3 billion.
Overall spending across all provincial departments rose by 4.4 per cent, amounting to more than $719 million above budgeted levels.
Significant cost increases were reported in several areas:
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Health and Wellness: An additional $416 million driven by inflationary pressures and higher patient volumes
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Restructuring costs: Spending was $172 million higher than expected for corporate initiatives, though officials did not provide details on where those funds were allocated
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Wildfire and emergency management: $33.6 million related to a severe wildfire season
The latest update shows the deficit has grown by $64 million since the previous forecast released in September.
On the trade side, the province continues to rely heavily on the United States and China as its primary trading partners. Exports to the U.S. remained stable, rising slightly by 0.1 per cent, while exports to China fell sharply by 26.8 per cent, largely due to retaliatory tariffs on Canadian seafood.
Overall seafood exports declined by six per cent, though the province noted that some seafood shipments are being redirected to other markets, including Vietnam and Hong Kong, which are tracked separately from China.
Finance Minister John Lohr presented the fiscal update, acknowledging the pressures facing the province as it balances rising costs with slower-than-expected revenue growth in a challenging global economic environment.
Photo Credits : CTV News
