No balanced budget next year

Dal News Staff - November 16, 2009

In a response to a report filed by his economic advisory council, Nova Scotia Premier Darrell Dexter concedes it won't be possible to balance the budget next year because of the state of the province's books.

"I believe the advice from the panel on balancing the budget too soon is sound," Dexter said in a statement. "We have information now that no one had six months ago, and I recognize that we cannot balance the budget next year."

The panel made three recommendations including a two percentage point hike in the HST, targeted spending cuts and government measures to spur economic growth.

What do you think about the recommendations? And, what's your advice for the government: what should the NDP do to get Nova Scotia's finances back on track?

SEE STORY: NDP urged to raise taxes, CBC News

Readers Say

It's nice to see a politician do the right thing and look bad than do the wrong thing to look good.

The NDP inherited a can of worms from Rodney's Conservatives, at least we now know how much of a can it is. It amazes me that such information was concealed by our previous government, shame on them.

Sure Dexter made some promises, but no body can say the results of the election were based on those promises. The vote was an anti-Tori vote, and with the Liberals having virtually the same policy as the Conservatives, its not surprising the people opted for something new.

New: politicians admitting that promises cannot be kept. Is that really the same as breaking a promise? I mean, any other government would just simply deny any allegations at all. I applaud the NDP for admitting that its going to take some tough medecine to fix NS rather than cover everything up.
Government should find other ways to get the finances back on track instead of simply raises taxes and asking everyone to give away even more of their hard earned money. Nova Scotians are taxed, and over taxed, in so many ways. We even sometimes pay tax many times over for a single item, when you think paying tax once for something would be appropriate. The government need to find ways to cut back and it is possible. To start, being more efficient is key. Time, resources, and a great deal of money are constantly lost with inefficiencies and/or things that are done that do not need to be done. Let's focus our time and money on important items. This may all sound very plain and simple but this was done, we would see the benefits relatively quickly. (and more importantly, we would see great benefits over time) Let's see positive change for people now and the future! Please!
The report was correct, NS is a mess financially with a >$12B debt and now a deficit again for less than 1M people. Things MUST change NOW or we will leave our kids with an even greater mess. Let's 'go big or stay home', in other words tackle the big items like public sector wages. They and their benefit plans are a major expense to NS.

1. So while many in the private sector are cutting back let's do the same in the public sector with wage increases limited to <2% for $0-50K, <1% for $50-100K and 0% for >$100K.
2. Let's limit or stop bonuses to those making over $100K.
3. Introduce a reasonable hiring freeze.
4. Strengthen the AG so there are more audits and expenses are curtailed.

Next let's generate some revenues;
5. Introduce some form of mandatory returns via commercialization royalties for all the research grants given to our universities, like is done in the US. If this means changing Collective Agreements, then so be it since NS is broke and the 'free ride' is over.
6. Become much more agressive & smarter in selling NS's products & services globally by focusing on a limited number, no more than 10, of areas of competancy. Eg: PEI has 4-5 I think. Carefully target our export markets for maximum long term returns.

Just some thoughts. Unfortunately all Nova Scotians are responsible for our current mess by electing our past governments and we all must work together, appreciate that government must cut back on its services & expenditures and start living within our means.

Our children will appreciate our smartness now so they don't have an even greater mess in 10, 20 years time when the demographics of NS will even be tougher to support our past & current standard of living.
The report was correct, NS is a mess financially with a >$12B debt and now a deficit again for less than 1M people. Things MUST change NOW or we will leave our kids with an even greater mess. Let's 'go big or stay home', in other words tackle the big items like public sector wages. They and their benefit plans are a major expense to NS.

1. So while many in the private sector are cutting back let's do the same in the public sector with wage increases limited to <2% for $0-50K, <1% for $50-100K and 0% for >$100K.
2. Let's limit or stop bonuses to those making over $100K.
3. Introduce a reasonable hiring freeze.
4. Strengthen the AG so there are more audits and expenses are curtailed.

Next let's generate some revenues;
5. Introduce some form of mandatory returns via commercialization royalties for all the research grants given to our universities, like is done in the US. If this means changing Collective Agreements, then so be it since NS is broke and the 'free ride' is over.
6. Become much more agressive & smarter in selling NS's products & services globally by focusing on a limited number, no more than 10, of areas of competancy. Eg: PEI has 4-5 I think. Carefully target our export markets for maximum long term returns.

Just some thoughts. Unfortunately all Nova Scotians are responsible for our current mess by electing our past governments and we all must work together, appreciate that government must cut back on its services & expenditures and start living within our means.

Our children will appreciate our smartness now so they don't have an even greater mess in 10, 20 years time when the demographics of NS will even be tougher to support our past & current standard of living.

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