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Nova Scotia’s estimated budget surplus sliced as income tax estimates plunge

By December 19, 2018 No Comments

Nova Scotia’s projected budget surplus is being sliced away by falling income tax revenue and the rising cost of health care and ferry service subsidies.

In a fiscal update released today, the province is estimating a surplus of $27.3 million for 2018-19 – $7.2 million less than the estimate provided earlier this fall.

READ: Nova Scotia’s 2018 budget projects $29.4M surplus boosted by cannabis sales

The update also noted that income tax revenue had plunged by $110 million.

And cannabis tax revenues were $6.3 million lower than expected, mainly due to the delay in the rollout of the legalization and supply shortages.

Meanwhile, health spending was $105 million over budget, with over half of that due to rising demand for health services provided by the Nova Scotia Health Authority.

As well, the cost of subsidizing the ferry that links Nova Scotia with Maine was $4.2 million over budget.

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