Nova Scotia budget brings razor-thin surplus, modest spending

The Nova Scotia government unveiled a stay-the-course budget Tuesday, with a razor-thin $17.1-millionsurplus and a slate of small investments.

"Our net position is modest," said Finance Minister RandyDelorey.

• Nova Scotia budget highlights: Where is the money going?
• Nova Scotia budget promises boost for early childhood educators

The only tax increase in the budget a small hike on tobacco accounts for most of the surplus.Thereare no major new programs or big-ticket items, with the government touting a balanced $10 billion budget.

Amonga laundry list of modest spending increases, the single-biggest is $14.4 million more for home nursingand support services.

The surplus prediction assumes overall health-care spending won't go up this year, even though itincreased an average of two per cent annually over the past five years.

The government said it plans tospend nearly $3.7 million this year on designs for replacing Halifax's crumbling Victoria General Hospital,but no money has been committed for construction yet.

The province said it will spend $6.6 million more on child care, splitting the money between subsidizedchild-care spaces, inclusive programming and a wage increase for early childhood educators.

Theprovince didn't offer any details on the wage increase, saying specifics will released in the next fewweeks. Nova Scotia's early childhood educators are currently paid an average of $12.84 per hour, thelowest rate in the country.

Small income assistance bump

Nova Scotians who receive income assistance will see a $20 increase to their monthly allowance startingat the end of May.

"That is the single largest increase in the province's history," said Delorey.

The increase will cost $7.5 million overall, affecting about 24,000 people in theprovince.

The province will also spend $12.9 million more on support for people with disabilities, including moneyto move people out of facilities and into community-based care.

Other spending highlights

Nova Scotiasmokers will be taxed an additional 50 cents for every pack of cigarettes they buy, andcigars will see a relatively small tax jump. The tax doesn't apply to e-cigarettes, but the province saysthe increase will bring in an additional $15.8 million per year.

Other spending highlights:

• $6 million to expand high-speed internet in rural areas.
• $1.9 million to cut down on wait times for knee and hip surgeries.
• If farmers donate their crops to food banks, they'll get 25 per cent of the value back as a taxcredit.

The government says the province had a deficit of $71 million in 2015-2016, lower than its originalestimate of $96.6 million. The province says revenues were down 0.3 per cent last year, but expensesalso went down by 0.7 per cent.