Liberals willing to balance budget at any cost?
REVISED: After hearing the quarterly budget forecast update from Liberal government Thursday, the NDP Caucus and leader Gary Burrill are none too happy about what they feel are inappropriate priorities in government spending. "While funding for seniors' care is being cut, food bank use is up 20%," says the release, " and our classrooms need investment, the December budget update shows the Liberal government is intent on balancing the budget at all costs."
Minister of Finance and Treasury Board Randy Delorey presented the forecast update early Thursday, with a projected surplus of $12.1 million, down $5 million from the net position on budget day.
"I'm pleased we've stuck to our plan that invests in health care, education, and employment initiatives for our youth," said Mr. Delorey. "This has allowed us to make key investments and move towards fiscal sustainability, which is why we've been able to respond to uncertain and unexpected events, like new federal infrastructure programs, the flood damage in Cape Breton and forest fires earlier this year."
Delorey noted new federal-provincial cost-sharing programs; clean water/waste water projects, ocean research, an enhanced science complex at Acadia University and projects at Nova Scotia Community College campuses in Bridgewater and Stellarton.
The delay in the completion of the new Halifax Convention Centre will have several revenue and capital implications for the province. It reduces revenue ($110.3 million), the capital expenditure ($169.2 million) and debt servicing and amortization costs ($1.8 million).
"Despite the enormous need for social investment, the Liberals continue to have only one idea: balance the provincial budget at all costs," said NDP leader Gary Burrill. "The results of this failed approach can be seen in the crises in our classrooms and in seniors' care."
The Liberals' approach, added the release, has been to cut back on the services Nova Scotians depend on with cuts to seniors' care, community organizations and the arts.
Progressive Conservative Finance critic Tim Houston says Stephen McNeil’s budget "is a house of cards."
"Today’s update shows revenues are down $73 million and expenses are up $45 million," says a news release from Houston, who adds that "it’s a recipe for disaster when an economy is as weak as Nova Scotia’s." The budget forecast update says that for the first eleven months of 2016, employment and labour force are both down.
“People need jobs. We are facing a serious cost of living crunch. Inflation and taxes are going up and people have less money in their pocket,” says Houston. “Stephen McNeil has proven in his first three years he has no idea how to get our economy going and aggressively grow revenue.”
Houston says on top of that, the McNeil government has completely poisoned the negotiations with unions, putting the entire budget at risk.
“Stephen McNeil has made a huge mess with negotiations. The stress level is really high for Nova Scotians,” says Houston. “It didn’t have to come to this. If Stephen McNeil actually did the work upfront to negotiate, rather than legislate, they could have worked out a reasonable solution that Nova Scotians could afford.”
Houston says the poisoned negotiations have created a massive distraction from what the Premier should be doing.
“There’s no leadership or common sense from Premier McNeil,” says Houston. “He’s unavailable. He keeps ducking from one scandal to the next and he’s distracted from the real goal of rebuilding our economy. That has to change.”
"The 'steady as she goes' approach is not what is required," Burrill told SCT in an interview, "especially in a crisis situation brought about by the contract dispute between the government and Nova Scotia Teachers."
"Nova Scotia should take advantage of historic low interest rates to begin investing adequately in our people's health, education and opportunities," added Burrill. "The McNeil Liberals have a great deal to answer for."
Delorey also noted:
-- revenue is projected to decrease $72.9 million to $10.2 billion, mainly due to the convention centre delay and lower tax revenue, which is partially offset by increased recovery revenues
-- forecasted tax revenue is down $45.5 million, mainly from reduced personal income tax, motive fuel tax and HST. The reduction is partially offset by projected increased revenues from corporate income tax and tobacco tax
-- expenses are forecasted to be up $45 million to $10.2 billion, mainly due to participation in new federal infrastructure programs
-- three additional appropriations, totaling $11.6 million, are necessary, with the largest at Labour and Advanced Education, with the increase due to recoverable expenses.
