Nova Scotia premier defends his government’s historic $1.2-billion deficit

Nova Scotia Premier Tim Houston looks on at Province House following the speech from the throne in Halifax on Friday, Feb. 14, 2025. THE CANADIAN PRESS/Darren Calabrese

HALIFAX — Nova Scotia’s premier is defending his government’s record $1.2-billion deficit, saying he is focused on growing the economy and making major investments in health care.

When asked if Nova Scotians have reason to be worried about the deficit -- or the fact it’s risen by $697.5-million since February’s budget -- Tim Houston said Nova Scotians should feel confident their government understands their needs and is willing to invest in them.

“We’ve been very clear that we will invest in making sure Nova Scotians have access to health care. It’s expensive. This is the reason why the Liberals didn’t deliver health care -- because it’s expensive. We’re not looking away from the challenges of the day,” he told reporters Tuesday.

Houston would not say if his government is planning to cut spending, only that he is concentrated on growing the economy so the province can continue to provide services to Nova Scotians at an “increasing level.”

“That’s why I’m very excited about Wind West (offshore wind project) and the generational impact that will have on the finances of this province and the ability to generate money and pay for health care and education and roads,” Houston said.

Government spending is up by $503 million more than forecast, primarily in the health sector. Health spending now accounts for 46 per cent of the overall budget at $8.3 billion this fiscal year, finance department officials said.

Finance Minister John Lohr said Monday provincial revenues have dropped $44.9 million since February’s budget forecast in part because of decreases in population growth and consumer spending.

The official Opposition NDP leader Claudia Chender said Tuesday government spending has ballooned while Nova Scotians are waiting to see improvement in areas like health care and housing.

“This government is spending an enormous amount of money and Nova Scotians don’t have a whole lot to show for it,” she said, adding that residents are continuing to struggle with issues like access to primary health care and the high cost of living.

Chender said if government believes this level of spending is needed to make people’s lives better -- “we better see people’s lives getting better. And right now, that’s not what we’re hearing.”

Liberal member Derek Mombourquette criticized Houston’s response to questions about the deficit, saying the government “obviously has no plan to address it at this point,” and is instead talking about offshore energy projects that will take years to develop.

“Today in the legislature, it was almost like they were celebrating the fact that they had this historic deficit,” Mombourquette told reporters.

This report by The Canadian Press was first published Sept. 23, 2025.

By Lyndsay Armstrong