The Canadian Taxpayers Federation (CTF) has raised concerns over Nova Scotia’s fiscal management following the unveiling of Budget 2024, which reveals a significant deficit of $467 million. Franco Terrazzano, CTF Federal Director, criticized the deficit as burdensome to taxpayers and indicative of unchecked spending.
“The whopping $467 million deficit is a slap in the face to Nova Scotia taxpayers who can’t afford to be saddled with more government debt and higher interest charges,” said Terrazzano. “It’s clear that the Houston government put in zero effort to find savings in this budget.”
Terrazzano emphasized that the budget amplifies spending by $1.7 billion compared to the previous year, without a clear plan for future fiscal balance. Moreover, with the deficit forecasted to reach $20.2 billion by the year’s end, the burden of interest charges on taxpayers is expected to soar to $823 million.
One notable change highlighted in the budget is the elimination of the bracket creep income tax hike starting January 1, 2025. This move is welcomed by taxpayers, as bracket creep often results in individuals being pushed into higher tax brackets due to inflation, despite stagnant purchasing power.
However, despite this positive change, Terrazzano urged the government to prioritize spending cuts and debt reduction to provide further relief to taxpayers. He emphasized the need for responsible fiscal management to prevent further accumulation of debt and its associated costs.
While the budget includes measures aimed at addressing healthcare, education, and poverty reduction, opposition leaders believe it falls short of addressing critical issues, particularly income assistance and taxation.
Zach Churchill, Liberal Leader, criticized the government’s failure to utilize unforeseen revenue to reduce the provincial sales tax in addition to indexing tax brackets. Similarly, NDP Leader Claudia Chender expressed disappointment in the budget’s lack of substantial changes to support the province’s most vulnerable populations.
