HALIFAX 鈥� The 2021-22 fiscal year saw Nova Scotia record a 鈥渟urprise鈥� $350.9-million surplus after forecasting a deficit of $584.9 million in the March 2021 budget, Finance Minister Allan MacMaster said Friday.
According to Finance Department officials, the $935.8-million swing from the figure forecast by the previous Liberal government is the largest in the province鈥檚 history. The Progressive Conservatives were elected in August 2021.
MacMaster said the province got the first inklings of an improved fiscal picture last November when Statistics sa国际传媒 provided additional information indicating increased revenues. It allowed MacMaster to forecast a surplus of more than $108 million in his December update.
鈥淚t was a nice surprise I can tell you,鈥� MacMaster told reporters, adding that the final surplus number wasn鈥檛 known until just a few weeks ago.
The minister said provincial revenues for the fiscal year were $14.1 billion, an increase of $1.3 billion over the budget due to higher tax revenues, the forfeiture of offshore gas licences and federal transfers.
Provincial expenses of $13.7 billion were up $386 million from the budget because of increased pandemic support for health care, additional transfers to municipalities and university infrastructure funding, he said.
MacMaster said the overall figures for the year ending March 31 reflect the province鈥檚 stronger-than-anticipated economic recovery from the COVID-19 pandemic.
鈥淣ova Scotia had a smaller economic contraction in 2020 and stronger growth in 2021 than most other provinces,鈥� he said. 鈥淚n 2021, Nova Scotia鈥檚 real GDP grew by 5.8 per cent and our population grew by 2.1 per cent surpassing one million people.鈥�
However, even after the $350-million surplus was applied to the debt, the province ended the fiscal year with a net debt of $16.6 billion 鈥� $167.5 million higher than the previous year.
That didn鈥檛 prevent opposition finance critics from wondering why the government hasn鈥檛 offered more in the way of direct assistance to people now struggling with the increased cost of living due to inflation.
Liberal Fred Tilley pointed to December鈥檚 forecast as proof the government knew it had more money to use at its discretion. Tilley said one measure that could have helped Nova Scotians is a yearlong cut to the provincial tax on gasoline, which he suggested in a bill tabled during the spring sitting of the legislature.
鈥淏ut they (government) chose not to do that, even though they knew there was a surplus,鈥� Tilley said.
New Democrat Lisa Lachance said the government鈥檚 inaction was a 鈥渓ost opportunity.鈥�
鈥淚t鈥檚 clear the government had the flexibility to provide support,鈥� she said.
But MacMaster was adamant that there wasn鈥檛 enough information either last year or before the Progressive Conservative government tabled its first budget in March, which forecasts a $506.2-million deficit for fiscal 2022-23.
鈥淲e are always operating with the information we have,鈥� the minister said. 鈥淭he reality is we have seen a lot of volatility worldwide and all governments are seeing these swings in numbers.鈥�
This report by The Canadian Press was first published Sept. 9, 2022.
Keith Doucette, The Canadian Press
