Nova Scotia’s finance minister says a cut in the harmonized sales tax scheduled for next year is in jeopardy.
Diana Whalen says the province can’t afford to lose about $190 million in revenue for each percentage point cut in the HST.
Whalen is getting ready to release an updated economic forecast Thursday and while she won’t give specifics, the finance minister says previous projections by the province’s former NDP government are significantly off the mark.
The NDP brought in legislation to cut the HST by two percentage points over two years, beginning next year.
Whalen says the province’s overall fiscal situation is worse since the NDP announced in August that the province was running a slender surplus of $16.4 million.
Whalen says revenues have fallen to lower levels than were projected.