2009 Nova Scotia budget highlights |
Economic context
Measures concerning individuals
Measures concerning businesses
Other measures
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Nova Scotia Minister of Finance Jamie Muir presented the 2009 provincial budget today; however, the minority government was subsequently defeated on a confidence motion. Nova Scotians will go to the polls on June 9, 2009.
The following is a summary of the tax highlights contained in the budget.
Economic context
- Projected real economic growth of 0.2%
- Projected surplus of $4.0 million on revenues of $8.5 billion, provided changes to the Provincial Finance Act are passed. Without the changes, there would be a projected deficit of $176.1 million.
- Receipt of $122.3 million of federal infrastructure stimulus, $79.4 million crown share adjustment and $74.2 million in Offshore Agreement.
- Debt grew by $176 million in the current year, and is expected to grow another $1.134 billion to $13.469 billion in 2012.
Measures concerning individuals
- Planned tax credits for public transit and healthy living effective January 1, 2009, are cancelled.
- Graduate Tax Credit carryforward is extended from two years to four years.
Measures concerning businesses
- Starting in 2011, small business rate will be cut in half over three years from current 5% to 2.5% by 2013. However, the small business deduction limit will remain at $400,000.
- Large corporations tax will decline from 0.2% to 0.15% as previously announced
- Nova Scotia Equity Tax Credit and Labour-Sponsored Venture Capital Tax Credit are extended to December 31, 2010.
- Amending the Provincial Finance Act to allow revenues related to the Offshore Offset to be spent on programs and services, instead of paying down provincial debt. Public comments from opposition leaders indicate that this will not pass.
- Planned infrastructure spending of $806 million, including $354 million for highways.
- Tobacco taxes will increase by $1.25 per package.
For more information, please see the Ministry of Finance website .
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Nova Scotia budget highlights
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