The Lohr budget, titled “Defending Nova Scotia,” is a high-stakes attempt to fix the province’s “stagnating” economy. While the government is spending big on infrastructure, they are also tightening the belt on the public sector to manage a $1.19 billion deficit.
Thank you for reading this post, don't forget to subscribe!📉 What’s Shrinking (The “Right-Sizing” Plan)
To stabilize the books, the province is cutting back on operational costs:
- The Workforce: A 5% annual cut to the civil service and 3% to the broader public sector (health, education, and Crown corps) through attrition.
- Community Support: A $130.4 million drop in grants for local community organizations.
- Public Services: Closure of several tourist bureaus and three provincial museums.
📈 What’s Growing (The Big Investments)
Despite the cuts, the province is funneling record amounts into “brick and mortar” projects:
- Healthcare ($6.7B Total): The lion’s share of the budget. Massive funds are directed toward the Halifax Infirmary expansion and $1.2B for Cape Breton’s health-care redevelopment.
- Housing: A mix of $46.4M for new public housing and $25.2M for supportive housing, plus expanded rent supplements.
- Education: A notable $100.4M commitment to universal province-wide school breakfast and lunch programs.
💰 Impact on Your Wallet
The government estimates the average family will save roughly $1,400 this year. This is driven by:
- Tax Indexing: Keeping personal income tax brackets aligned with inflation.
- Lower HST: Maintaining the HST at 14%.
- Small Biz Perks: Keeping the small business tax rate low (1.5%) while raising the earnings threshold to $700,000.
The Fiscal Snapshot
| Metric | 2026-27 Projection |
| Total Spending | $18.9 Billion |
| Deficit | $1.19 Billion |
| Net Debt | $27.9 Billion |
| GDP Growth | 1.5% (Slowdown) |
