ACC Analysis

The Government of Nova Scotia’s 2026/2027 Budget saw no major tax increases on business or individuals but featured a significant deficit of $1.19 billion and is forecasting future deficits over the next four years. Government cannot continue down an unsustainable path that passes the burden of debt back on to the taxpayers of today and tomorrow. It must immediately begin reining in expenses, living within its means, and restoring meaningful fiscal anchors, such as credible debt-to-GDP targets, balanced operating budgets, or hard spending caps, to safeguard Nova Scotia's finances for future generations and prevent higher taxes or deeper service cuts down the road.

Nova Scotia Budget Highlights

• No major new business tax changes as corporate and personal income tax rates remain unchanged.
• Fiscal Outlook with Challenges: Revenues projected at $17.4 billion and expenses at $18.9 billion, resulting in a $1.19 billion deficit (before $50 million contingency); net debt rises to $27.9 billion, debt-to-GDP at 39.4%, alongside a four-year Fiscal Stability Plan featuring public service reductions and expense controls for long-term predictability.
• $3.5+ Billion Capital Plan: The province's largest-ever infrastructure investment funds highways, hospitals, schools, public housing, and long-term care facilities, opening major contracting, subcontracting, and supply-chain opportunities for construction, trades, and related businesses.
• Targeted Growth in Six Priority Sectors: Strategic emphasis on attracting private investment in defense/aerospace, clean/conventional energy, including offshore wind and green hydrogen, forestry/mining, fisheries/agri-food, housing/construction, and AI/digital economy to drive jobs, diversification, and long-term prosperity.
• $5 Million Expansion of Innovation Rebate Program: New funding to accelerate sustainable growth in natural resources, clean energy, advanced manufacturing, and defense through targeted rebates for innovative investments.
• $3.6 Million Boost for Green Hydrogen and Offshore Wind: Additional support to advance projects like Wind West, unlocking private-sector investment, job creation, and clean energy export potential.
• $1.5 Million for Invest Nova Scotia: Dedicated allocation to boost GDP specifically in the six priority sectors via investment attraction and economic development efforts.
• $1.5 Million for Seafood Sector Innovation Hub: Fresh funding to enhance productivity, provide industry services, and support science-based growth in fisheries and agri-food.
• Trade and Market Diversification Funding: $2.5 million multi-year plus $1.6 million this year, including a new program for seafood/agri-food exporters to help businesses build capacity and expand into new global markets.
• $300,000 for Mining Industry Growth: Targeted investment to support expansion and development in the natural resources sector.