Critics bash budget over ‘modest’ tax cuts, spending hike
Posted Apr 4, 2012 05:47:23 AM.
This article is more than 5 years old.
The Dexter government has unveiled what the finance minister is calling his last deficit budget, and the details have some observers wondering if an election is in the offing.
The 2012-13 budget includes $9.5 billion in total spending and a $211 million deficit, and Finance Minister Graham Steele says the province is on track to balance the books in 2013.
The budget does include increases to the affordable living tax credit, the poverty reduction credit and the disability credit.
Finance officials said the range of savings would amount to as little as pennies for some individuals to just over 200 dollars for those with disabilities.
The government is also targeting help for low-income seniors through an initiative that would eliminate the paying of provincial income tax, and has revealed the promise to cut the HST by two per cent, starting in 2014.
Canadian Taxpayers Federation Atlantic Director Kevin Lacey says the promise of “modest, but real” tax cuts that Steele promised before the budget has turned out to be an understatement.
“If you’re an average middle-class taxpayer in this province, there’s nothing in this budget for you,” he said. “In fact you’re really holding your breath and waiting for 2014, and a lot could go on between now and then.”
It’s the focus on conditions in the next couple of years that has critics suggesting this may be a budget on which the New Democrats are preparing to campaign.
“We hear talk about tax reduction, but there’s not a tax they could find that they haven’t raised, and now they’re talking about reducing them,” said Lacey.
Regardless of the motive, Progressive Conservative party leader Jamie Baillie says there’s no reason to delay balancing the books, noting overall spending has increased by $262 million.
“Simply holding the line on spending would have given us a balanced budget this year, and then Nova Scotians could have real meaningful tax relief now and not at some future date,” he said.
At least one group showed up at the legislature on Tuesday to express disappointment that there had been no increases in taxes.
“We believe that Nova Scotians would rather see higher tax rates than cuts in public services that we all depend on,” said Brian Gifford of Nova Scotians for Tax Fairness.
Spending on public services and government departments is up across the board, except in education, where funding has been cut – although per-student funding is now at a record high.
Nova Scotia School Boards Association president Vic Fleury says that won’t help to improve education.
“It’s going to affect classrooms,” he said. “Yes, there’s been a decline in students, but there’s also been a host of programs put in place in the last decade that are serving the needs of students that need that help.”
Although district health authorities were told to cut their budgets by three per cent, health care spending has gone up by 2.5 per cent.
That’s a smaller increase than in the last two years, and the head of the Nova Scotia Nurse’s Union says it’s not enough.
“We have an aging population in this province and I think we’re all fairly foolish to think it’s not going to cost more to look after them,” said NSNU president Janet Hazelton.
With health and education stakeholders calling for more money, Liberal leader Stephen McNeil said spending increases on administration costs should have been reined in.
“We’re telling Nova Scotia students there’s going to be less support for you in the classroom, we’re telling Nova Scotians you’re going to wait longer for health care,” he said. “This has really been about supporting senior administration and doing very little for Nova Scotians who have been looking for help.”
McNeil said he’d been hoping to see some form of relief involving power rates and fuel prices.
Small business advocates were pleased with a half-percentage point reduction in the small business tax. The move from four per cent to 3.5 per cent will result in savings of $10 million annually.
As part of its cost-cutting measures, the government is closing its office in Ottawa, which saves $500,000 a year.
The $610 million figure for capital expenditures announced last fall for roads, schools and bridges remains unchanged in the budget.
