PEI Budget Report 2014

On April 3, 2014, the Honourable Diana Whalen presented her first budget as Nova Scotia’s Finance and Treasury Board Minister and the first budget of the majority Liberal government elected last October. There is a significant change in the fiscal state of the province when compared to the position reported by the former government. This year’s budget makes it clear that a long-term approach is favoured over short-term solutions in order to move the province out of its current deficit position.

The deficit reported for 2013-14 is $562 million which is in stark contrast to the $16 million surplus that was forecast last year by the previous government. This deficit is due to a number of factors, such as increased use of social programs and declining source revenues. The government is forecasting a deficit of $279 million for 2014-15.

Highlights

• Deficit of $562 million projected for 2013-14 fiscal year
• Deficit of $279 million forecast for 2014-15 fiscal year
• No cut to HST rate for 2014
• Comprehensive Tax Review underway