Nova Scotia is facing a massive $1.19 billion deficit for the 2026–27 fiscal year. Finance Minister John Lohr’s new budget attempts a difficult balancing act: funding massive healthcare projects while aggressively shrinking the size of the provincial government.
Thank you for reading this post, don't forget to subscribe!The “Fiscal Sustainability Plan” (The Cuts)
To get the books back in order, the province is launching a multi-year strategy to trim the public sector:
- Civil Service Shrink: A 5% annual headcount reduction over the next four years.
- Wider Public Sector: A 3% annual reduction for Crown corporations and regional education centers.
- Community Grants: $130.4 million slashed from discretionary grants that support local organizations.
- The Strategy: The government is banking on attrition—leaving positions vacant as people retire—rather than mass layoffs.
Where the Money is Going
Even with the cuts, this remains the largest budget in the province’s history due to “must-have” infrastructure:
- Healthcare ($6.7B): Accounting for over a third of all spending, mostly focused on hospital expansions.
- Long-Term Care ($873M): Funding for thousands of new nursing home beds.
- Tax Relief: To soften the blow of inflation, the province is indexing tax brackets, which they claim will save families roughly $1,400 per year.
The Bottom Line
| Metric | 2026–27 Projection |
| Total Deficit | $1.19 Billion |
| Total Debt | $27.9 Billion |
| GDP Growth | Slowing to 1.5% |
