200910 Budget Overview

first_img Making Life Better for Families Nova Scotia’s capital plan for 2009–10 will leverage available federal dollars and stimulate the provincial economy. Government plans to spend a total of $796 million to build and repair roads and bridges, schools, health-care facilities, housing and more. $81.3 million will go towards funding for parks, land improvements and land purchases across the province. This will help meet the province’s land purchase requirements such as those contained in the Environmental Goals and Sustainable Prosperity Act. Beginning Oct. 1, the provincial HST portion will be removed from basic home electricity. This initiative will put $15 million back into Nova Scotian households throughout the winter heating season. Up to 1,500 Nova Scotians who build or purchase a new home can qualify for The New Home Construction Rebate. The rebate is equivalent to 50 per cent of the provincial portion of the HST, to a maximum of $7,000. The Equity Tax Credit will be increased by $1 million. The rate of the tax credit will be increased from 30 to 35 per cent of the value of eligible investments made, starting in January 2010. This initiative is expected to return $7.9 million to businesses in 2010. To increase competitiveness, a 10 per cent investment credit will be provided to businesses in the manufacturing and processing sector. At an annual cost of $25 million, the program will begin in January 2010 and will help manufacturers boost productivity and create secure jobs for Nova Scotians. Those graduating with a degree who choose to stay and work in Nova Scotia will be able to deduct up to $2,500 per year over a six-year period — providing potential tax savings up to $15,000. Students with a diploma or certificate will be able to deduct up to $1,250 per year over a six-year period, potentially saving $7,500 in taxes. A $750,000 fund will be created to help families with accommodation costs when they must travel out of province to seek medical treatment. -30- NOTE: For further 2009–2010 budget information, see the Department of Finance website at www.gov.ns.ca/finance . The province of Nova Scotia is tabling a budget with a deficit of $592.1 million for 2009–10. Total revenues for 2009–10, including government business enterprises’ net income of $356.8 million, are projected to be $8.4 billion, a decrease of $54.1 million over the 2008–09 estimates. Provincial source revenues are estimated to be down $421.5 million, offset by a $368.8-million increase in federal source revenues. Provincial source revenues have decreased primarily as a result of decreases in income taxes of $141.2 million and petroleum royalties of $362.8 million, offset by increases in HST revenues of $30.5 million and a $30.9 million increase in tobacco tax revenues. Interest revenues are up $11.4 million. Despite equalization payments being flat, federal source revenues are up over the 2008–09 estimates due to increases in infrastructure cost-shared revenues of $62.8 million, the Crown Share Adjustment payment of $79.4 million, increases to the amount accrued for the Offshore Agreement of $74.2 million, and increases in the Canada Health and Social Transfers of $43.2 million. These increases are offset by a decline in other federal sources of $15.2 million. Total expenses for fiscal 2009–10, before consolidation adjustments, are budgeted at $9.1 billion, up $761.1 million from an $8.3 billion total in 2008–09. Major increases in spending for departments include assistance to universities, $225.3 million; Health, $216.3 million; Labour and Workforce Development, $98.4 million; Community Services, $33.2 million; Service Nova Scotia and Municipal Relations, $45.7 million; Transportation and Infrastructure Renewal, $23.5 million; and Education, $23.4 million. A Measured Dose of Stimuluslast_img read more