Nova Scotians’ share of net debt growing: auditor

Nova Scotia’s auditor general says future government programs and services are at risk because of the province’s $15 billion in net debt.

Michael Pickup released a report Wednesday saying the province’s per capita net debt has seen its largest annual increase in the last five years.

Pickup says the net debt boiled down to $15,659 for each Nova Scotian in 2013-14, a six per cent increase from the year before.

“It talks to your ability going forward to be able to finance programs, be they expanded programs or the growth of the programs that you currently have,” he told reporters.

“The more of your money that goes to servicing a larger debt pool, obviously then the less you’ll have to spend on other things.”

His report says retirement health benefits, retiring allowances and accumulated sick leave totalled $1.8 billion as of March 31, an $81 million increase between 2013 and 2014.

He says that liability is unfunded, meaning the plans will have to be paid through future taxes and other revenues.

Provincial finance minister Diana Whalen says he government is well aware of Nova Scotia’s financial hardship, and she says her government is already working on it.

“It’s the bottom line for why we’re looking at program review, why we want to examine the services that we provide, and try and identify what’s core to government and really find ways to go forward in a different way,” she said.

In his state of the province speech earlier this month, Premier Stephen McNeil promised a review of every government department, vowing to cut any service that isn’t the government’s core business.