The province’s auditor general wants the Nova Scotia government to be more open about its spending in the face of an unexpected revenue windfall.
Nearly $1.7 billion was spent without much oversight after the government received nearly $2 billion in extra revenue mainly due to population growth.
“It is not unusual for governments to increase spending to address unanticipated needs from time to time. However, it’s an issue of concern for Nova Scotians as there is no official opportunity for legislators to debate the reasons behind spending billions of dollars of public funds,”
In 2022-23, $1.7 billion in additional appropriations were made on a budget of $14 billion, the largest
amount approved. The accumulated total of
budget overspending is now $6.1 billion over the last ten years.
Adair is the third person and auditor general to flag this practice since 2008 and it’s the second year she’s made a recommendation to provide accountability through the House of Assembly.
“Currently in Nova Scotia, the legislature has limited ability to hold the government accountable for large overspending of public funds,” says Adair.
Meanwhile, her latest report shows that over the last five years, Nova Scotia’s economy and finances have generally improved. Operating surpluses have been posted in four of the last five years.
The 2022-23 operating surplus of $115.7 million was due in part to provincial source revenue coming in $1.9 billion higher than budget as the provincial economy continued to rebound stronger than anticipated.
The Annual Financial Report has two chapters and provides insights on topics of interest impacting the Province including:
Boat Harbour:
• The Province’s liability to clean up Boat Harbour is now estimated at $350.1 million. This liability
has grown significantly over the past few years with $82.6 million in increases due to inflation
alone since 2019. Boat Harbour remediation cost is growing while the project awaits Federal
approval.
Health Spending:
• The Province spent $6.7 billion in health spending and capital asset acquisitions in 2022-23, with
annual healthcare operating expenses up $1.7 billion over the last five years.
Nova Scotia Teachers’ Pension Plan:
• Nova Scotia Teachers’ Pension Plan is 75.1% funded as of December 31, 2022. The 2022 report
of the independent Nova Scotia Teachers’ Pension Plan Panel with recommendations to address challenges facing the plan has not yet been publicly released.
Net Debt:
• Net debt has increased $2.8 billion to $17.8 billion since 2018-19, with an upward trajectory in
the growth rates year over year. Net debt to GDP Ratio of 31.7% improved from the prior year
ratio of 33.1%.