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The Nova Scotia government has introduced a $17.6-billion budget that includes major tax cuts and a reserve fund to be used if the U.S. president makes good on his threat to impose tariffs.<\/p>\n
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Finance Minister John Lohr brought forward a budget Tuesday forecasting a deficit of $697.5 million for the 2025-26 fiscal year \u2014 a figure that could rise if the $200-million reserve fund needs to be used.<\/p>\n
\u201cThe threat of U.S. tariffs continues to loom over us. We don\u2019t know what will come, but we are ready to respond,\u201d said Lohr in his budget speech. \u201cIt is clear we are entering a period of heightened uncertainty and heightened risk.\u201d<\/p>\n
Lohr said the province faces hard work in the years to come due to pressing issues such as slowing population growth and American protectionism, which could trigger a drop in exports. The Progressive Conservative government\u2019s proposed solutions range from lowering taxes to increasing capital spending on hospitals and public housing.<\/p>\n
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The $500 million in tax measures include a one percentage point reduction in the provincial portion of the harmonized sales tax, to 14 per cent, the indexation of tax brackets, and an increase in the basic personal amount that is shielded from the provincial income tax \u2014 moves the government says will save the average household more than $1,000 this year.<\/p>\n
Lohr noted that the sales tax cut is the first one in the province since 2010, and the lowest in Atlantic Canada.<\/p>\n
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