Nova Scotia budget includes major tax cuts, reserve fund amid U.S. tariff threats.
The Nova Scotia government has introduced a $17.6-billion budget that includes major tax cuts and a reserve fund to be used if the U.S. president makes good on his threat to impose tariffs.
Finance Minister John Lohr brought forward a budget Tuesday forecasting a deficit of $697.5 million for the 2025–26 fiscal year — a figure that could rise if the $200-million reserve fund needs to be used.
Lohr said the province faces hard work in the years to come due to pressing issues such as slowing population growth and American protectionism, which could trigger a drop in exports. The Progressive Conservative government’s proposed solutions range from lowering taxes to increasing capital spending on hospitals and public housing.
The $500 million in tax measures include a one percentage point reduction in the provincial portion of the harmonized sales tax, which would reduce HST to 14% from 15%; the indexation of tax brackets; and an increase in the basic personal amount that is shielded from the provincial income tax. The government says these moves will save the average household more than $1,000 this year.
Source: INVESTMENTEXECUTIVE
