Canadian Taxpayers Federation critical of N.S. spending after credit rating downgrade

Nova Scotia’s credit rating was recently downgraded.

The Canadian Taxpayers Federation, a not-for-profit advocacy group, is critical of the Nova Scotia government’s spending after the province’s credit rating downgrade from S&P Global.

Earlier this year, S&P Global, which is one of the biggest credit rating agencies in the world, downgraded Nova Scotia from AA- to A+ over concerns its budget performance in 2026 will far short of their previous expectations.

They attributed this change to higher-than-budgeted spending on health care, support for seniors and long-term care.

“Consequently, we believe that operating and after-capital deficits in the next several years will be larger and will persist for longer, making the path back to fiscal balance more uncertain,” S&P Global said in a news release.

In a separate release, the Canadian Taxpayers Federation called on the Nova Scotia government to rein in its spending.

“Nova Scotia taxpayers can’t afford to keep footing the bill for a government that spends more than it takes in,” said Devin Drover, Atlantic director for the federation, in the release. “Credit rating agencies are sounding the alarm and the Houston government needs to listen before the problem gets even worse.”

The Nova Scotia General Employees Union (NSGEU), which represents more than 8,700 public sector employees, is concerned about possible cuts at the province tries to find savings.

President Sandra Mullen believes the government is looking at a 10 per cent cut to provincial services but hasn’t had any direct notification from the government on their plans to address the deficit.

With files from CTV News Atlantic’s Jesse Thomas

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