Houston ‘Incredibly Optimistic’ Nova Scotia Can Afford Years Of Deficits
HALIFAX-Few would argue that Nova Scotia needs more investment in key areas like healthcare and infrastructure. But the government’s latest budget, passed in March, came with a $585-million deficit and plans for at least four more years of deficit spending.
At Tuesday’s State of The Province event, Premier Tim Houston admitted the deficit number is a bit scary.
“As an accountant, as a Progressive Conservative, a $500-million deficit is turning my hair…gray,” he told the Chamber of Commerce crowd. “But I have great faith in [Finance Minister Allan MacMaster] and his team.”
After his speech, Huddle asked Houston how his government plans to pay off the province’s growing debt. The Premier repeated that he has confidence and is “incredibly optimistic” about the future of Nova Scotia’s economy.
“We have great confidence in the economy of this province and the resiliency of the economy. The long-term plan is population growth; people drive economies.”
Houston says Nova Scotia has the potential to reach two million residents, which will greatly boost the economy. When pressed on how the province will pay off its growing debt if this potential isn’t realized, Houston repeated his optimism.
He also disagreed that higher taxes in the future are inevitable.
“I don’t think it’s inevitable at all. I wish there were anything in life that was a guarantee but we are optimistic about the future of this province,” said Houston. “I wouldn’t speculate on ‘if it all [doesn’t] goes well’ because I feel very confident that this province will be in a good place.”
During his speech on Tuesday, Houston reiterated the need to spend money now–especially on the province’s broken healthcare system.
This year, the province plans to spend $5.7-billion on healthcare, more than 40 percent of the budget. Houston repeated that he has promised to “fix” healthcare in Nova Scotia.
“A young guy came out of the building and he hollered at me ‘I’m rooting for you to fix healthcare,’ then he went back into the building,” Houston recalled of a recent encounter on the street. “That’s what drives me.”
“I don’t want to be like the Toronto Maple Leafs who can win three games of a playoff series but not the fourth.”
Houston also said that investment in healthcare is investment in people, which the province needs more of right now. It’s the same reason the government is waiving income tax on the first $50,000 earned by skilled trade workers under the age of 30.
“If I ask how many of you are struggling to find staff for your business right now, it’s a lot; we need people.”
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].