Provincial budget a ‘disservice’ to Nova Scotians: opposition

The Dexter government has proudly tabled the 2011-12 budget – but the opposition parties say it should be ashamed.

Debate begins today on the $9.3 billion plan, which includes a deficit of $389 million – up slightly from earlier projections.

Some money has been set aside for new initiatives in health care and education, with a total of $3.7 billion allocated for health spending and $1.1 for education.

There’s $11 million coming in personal tax relief, as the basic personal exemption amount will be increased by $250; and the small business tax rate will fall by half a percentage to four per cent, saving up to $4000 for small business owners.

The Halifax Chamber of Commerce is praising the NDP for exercising fiscal restraint while still providing a few goodies for everyone, but the provincial opposition parties have unleashed a barrage of scathing criticism on the New Democrats, saying they’ve done a disservice to Nova Scotians.

Liberal leader Stephen McNeil is accusing the government of misrepresenting the figures, something he says has been done before.

“This is a budget like last year’s, where they’ve inflated expenses and have lowballed revenue with the hope that they’re going to come in underneath,” he said. “Nova Scotians can no more believe in the numbers that were presented to us today than they could in the numbers that were presented last year.”

PC leader Jamie Bailie says the budget shows the NDP’s true colours as a tax-and-spend party.

“One day after a surplus, they are plunging us back into a significant deficit,” he said. “Even after adjusting for the university funding, they are turning their backs on $500 billion of surplus to deficit.”

McNeil agrees, saying the NDP is playing with the figures in order to serve its own agenda

“To justify an HST increase, to justify every user fee going up, to justify downloading $50 million onto municipalities, which will end upon the municipal tax bills of every Nova Scotian,” he said.

Finance Minister Graham Steele maintains it’s still too risky to return the province to balanced budgets before 2013.

Other highlights of the budget include:

•  Provincial debt was reduced from an estimated $14 billion to $13 billion as of March 31 because of $447.2-million surplus from 2010-11 fiscal year that was put toward the debt
• The government will spend $30 million on student bursaries and implement a maximum debt cap of $28,560.
• There will be $11 million in personal tax relief as the government increases basic personal exemption for the 2011 taxation year by $250, which means the amount earned before paying taxes rises to $8,481 from $8,231.
• Small business tax rate falls by half a percentage point to four per cent, costing the government $5.9 million in 2012-13, which means up to $4,000 in annual savings for small business owners.
• The province will spend $4.4 million to fund the eye drug Lucentis.
• Capital spending includes $560 million for roads, bridges, schools and health-care facilities, including $83.6 million for new schools in Bedford, Lunenburg and Yarmouth.
• The province will open at least four collaborative emergency centres in rural areas, which stream patients to get faster care.

Spending initiatives in HRM include:

• expanding the hours at Cobequid Community Health Centre
• continued funding for the new Rapid Assessment Unit and beds at the Halifax Infirmary
• three new radiation units at Capital District Health Authority
• new nursing home beds in Dartmouth, Upper Hammonds Plains and Sheet Harbour
• continuing nursing seats at Dalhousie University
• $5 million to help Halifax Stanfield International Airport extend its runway
• funding for the Cable Wharf-Queens Landing project on the Halifax waterfront
• continued funding for the Halifax Public Libraries system
• funding to build a new medical examiner facility and improve the Halifax Law Courts
• improvements to Highway 118 and other road upgrade and paving projects
• continued support for local museums
• funding for new schools, including Joseph Howe School in Halifax, Prince Arthur/Southdale-North Woodside School in Dartmouth and Bedford High School, and improvements to other HRM schools.