NEWS
09/21/2015 11:25 EDT | Updated 09/21/2016 01:12 EDT

Nova Scotia's latest estimate sees budget deficit rise to $122.5 million

HALIFAX — Nova Scotia is now projected to end the current fiscal year $122.5 million in the hole, $25 million more than estimated in the spring budget.

In a fiscal update released today, Finance Minister Randy Delorey says the increased deficit is mainly the result of lower growth in provincial tax revenue.

Delorey says higher home care costs and the costs of dealing with a harsh winter also contributed to the larger deficit figure.

Four departments need a total of $13.2 million in additional funding, including an extra $5.7 million for the Health Department for home care costs and $3.5 million for equipment repairs at the Transportation Department.

Delorey says continuing economic uncertainty means the government will have to remain diligent in its fiscal management to balance the books in 2016-17.

He adds that labour costs must be brought under control in order for the province to balance the budget. 

 

The Canadian Press