The Nova Scotia government continues to outspend its revenues, and that fiscal imbalance is forecast to drive the provincial deficit up to $1.44 billion according to a provincial budget update on Thursday. The record deficit is brought on by the roughly $19.2 billion the province is expecting to spend this fiscal year, a $208 million increase from what the government had budgeted for the period. Finance and Treasury Board Minister John Lohr said revenues are keeping up with spending, with the most recent update projecting the province to rake in roughly $17.4 billion, which is $2.8 million higher than initially budgeted. The budget update on Thursday showed the province spent $1.9 billion outside the of the previous 2025 to 2026 budget, with the fiscal year ending March 31, 2026. The excess spending made up almost 10 per cent of the overall spending that year. In all,12 government departments spent over their budgets. The department of health and wellness spent $384.6 million over budget last year, while seniors and long-term care spent more than $75 million over budget. This year, the province says much of the additional speeding is tied to an increase in health care and long-term care spending. Finance officials attributed the overspending to more patients accessing care, increased health-care staff and rising salaries. “The costs for the services Nova Scotians need, like healthcare and seniors’ care, are growing, and we’ve made much-needed investments in infrastructure like hospitals, medical equipment, schools and long-term care facilities,” said Lohr. “We remain focused on growing our economy in key sectors like defence and energy so there is more revenue to invest in these services.” The next budget update will come in December. For more Nova Scotia news, visit our dedicated provincial page
