Nova Scotia projects $778.8M deficit

HALIFAX — COVID-19 is hurting the province's pocketbook as well as making some Nova Scotians sick.

Nova Scotia is forecasting a deficit of $778.8 million for the 2020-21 fiscal year, according to Finance and Treasury Board Minister Karen Casey's second update on the annual budget, presented Thursday.

That's an $833.9 million difference from the $55 million surplus that was projected in February, although the first budget update presented in July predicted that deficit would be $74 million more than it is.

"Nova Scotia, like the rest of the world, is continuing to experience an unprecedented economic shock due to the COVID-19 pandemic," Casey said in a news release. "While we are pleased to see an improvement from the July forecast, government's priority remains protecting Nova Scotians and controlling the spread through strong public health measures, while making investments to support economic recovery."

The budget update said additional appropriations are required for 10 departments for a total of $298.8 million, with the majority of expenses related to supporting Nova Scotians and sustaining the economy during the COVID19 pandemic.

“Government is also increasing its authority to borrow by an additional $1 billion, for a total of $2.75 billion, increasing capacity to respond to COVID-19 if required,” the release said.

Total revenue is projected to be $11.41 billion, down $186.6 million from the budget, mainly due to decreased tax revenue and negative prior year adjustments of $214 million.

Overall expenses are projected $12.32 billion, up $708.7 million, mainly due to increased expenses related to the COVID-19 response.

Debt servicing costs are down by $15.6 million from budget.

Nova Scotia will also receive about $289.5 million in December through the federalprovincial-territorial Safe Restart Agreement.