Tilted Perspective: NS government is compromising its 'Back to Balance' initiative
For more details
Tilted Perspective
Full report
The fiscal situation unfolding for national and subnational governments around the world once again shows how even predictable events are taking some of them by surprise. The easy decisions last year to flood their economies with stimulus spending have to be followed by the tougher decisions to scale back once the bills become due. While some governments appear to remember the lessons of the over-extended 1990s, others still think there is an easier way out. Judging from the form and finish of its Back to Balance public relations exercise, the Government of Nova Scotia is heading in the direction of the latter.
CFIB projections of future Nova Scotia government revenues and expenditures show that tax increases are not necessary to achieve balanced budgets. Success, however, depends on holding the line on expenditure growth to no more than 2 per cent per year.
