Fiscal incompetence combines with lack of plan for job creation, says Baillie
Finance and Treasury Board Minister Randy Delorey outlined Nova Scotia's vulnerable fiscal situation and pledged continued spending discipline during government's second 2015-16 forecast update on Monday, Dec. 14.
The deficit is forecasted to be $241.2 million, an increase of $118.6 million from the September forecast update and $143.6 million above the original budget estimate of $97.6 million, with reduced tax revenues and offshore royalties driving up the deficit, according to a government news release.
In a separate release, Progressive Conservative leader Jamie Baillie says today’s budget forecast proves the McNeil government’s fiscal plan is failing.
“What the Liberal government is doing isn’t working,” said Baillie. “People need work, and families need stable incomes. They need to see the promise of job-creating conditions in Nova Scotia. Instead, this government has shut the door on new jobs and investment.” Baillie's release says also that real GDP growth for 2016 has been cut in half as projections for corporate income tax decline by $45 million and fewer people are working and spending money.
“Stephen McNeil’s attempt to cut his way out of this financial hole, with no plan for job creation highlights the main problem with this Liberal government. It’s more than fiscal incompetence. While Nova Scotians are struggling to pay the bills or moving away, the Liberals are drowning in red ink and random cuts. Nobody wins,” said Baillie. “We need a real plan from the Liberal government to spur economic growth and create jobs.”
"This update clearly shows how vulnerable our fiscal position is and how significantly a negative swing in revenues impacts us," said Mr. Delorey in his release. "In areas where we have control, on the spending side, we have made progress. We need to continue to be disciplined if we are to reach a sustainable fiscal position.
"As finance minister, I would love to be able to invest more in areas that matter to Nova Scotians - new and improved schools, state-of-the-art hospitals, better programs for seniors and those in need. Quite frankly, we can't get there if we don't stick to a fiscal plan that matches our programs and services to our ability to pay."
Highlights of Delorey's update included:
--total revenues forecast to be $9.8 billion, down $135 million from budget day
--provincial tax revenues forecast down $79.5 million, with reductions in corporate income tax of $44.9 million (down 9.1 per cent), HST, fuel and tobacco taxes
--total expenses forecast to be $10 billion, down $4.3 million
--net departmental expenses are up $4.4 million from estimate (Department of Community Services requires an additional appropriation of $14.4 million because of increased expenses in support programs, Pharmacare and other areas)
--a prior year's adjustment reduces revenue by $86.1 million (increases in personal income tax and HST are offset by a reduction in corporate income tax, offshore royalties and other areas)
--a $98.2 reduction in prior year royalties from the Sable offshore as estimated costs to wind up the project continue to rise
--forecasted real GDP growth has been revised down to 1.0 per cent from 1.7 per cent for 2015 and the 2016 real GDP growth has been reduced to 0.8 per cent from 1.5 per cent
Baillie says he is worried this is only the start of more bad news to come. He’s calling on the Liberal government to release the capital plan tomorrow.
“Today’s forecast is more proof the Liberal government is incapable of managing the budget,” said Baillie. “Nova Scotians deserve to see this government’s priorities now.”
