HST cut for Nova Scotians in jeopardy
Posted Dec 18, 2013 07:21:33 AM.
This article is more than 5 years old.
Nova Scotians expecting a cut to the HST next year may be disappointed.
Finance Minister Diana Whalen said the province can’t afford to lose about $190 million in revenue for each percentage point cut in the HST.
“Given the figures we have been presented with, and which we will be bringing forward, it will become clear that that’s absolutely not the right thing to do at this time,” explained Whalen.
Whalen isn’t expected to give specifics in her updated economic forecast tomorrow, but she said previous projections by the province’s former NDP government are significantly off the mark.
According to Whalen, the province’s overall fiscal situation is worse than what the NDP announced in August when they said the province was running a slender surplus of $18.3 million and that revenues have fallen to lower levels than were projected in the previous update.
She added it also throws into doubt when the books can be balanced, although the government is promising to eliminate the deficit before the end of its mandate.
Kevin Lacey of the Canadian Taxpayers Federation told News 957, he agrees balancing the province’s books should be a priority, but keeping taxes high may not be the best way to accomplish that.
“We need more revenue, and we’re only going to get more revenue by growing the economy. We can’t grow the economy when we’re paying the highest taxes in all of Canada,” said Lacey.
Lacey added a reduction in government spending is necessary if Nova Scotia is going to achieve a balanced budget.
Whalen recently met with other finance ministers from across Canada. She believes based on what she heard at those meetings, Nova Scotia is likely looking at balancing its books on the same timeline as other provinces, within two to three years.
