HALIFAX -- The Nova Scotia government is forecasting a deficit of $97.6 million for 2015-16 in a budget that sees public sector cuts, tobacco tax increases and changes to a tax credit that has drawn the ire of the province's film industry.
The $10-billion budget maintains a $24 million annual film tax credit for this year but restructures it. And next year, the credit will be reduced to $6 million next year, a move the government concedes will make the province less competitive with most other jurisdictions.
"I recognize this change will be deeply felt and many will react negatively," said Finance Minister Diana Whalen. "We simply cannot afford to maintain the credit in its current form."
In the days before the budget, Whalen mused about cutting the tax credit, which raised the ire of the province's film and television industry. The Trailer Park Boys launched an online video appeal asking the government to preserve the credit, which even drew the attention of Snoop Dogg and Axl Rose.
Whalen said an additional $6 million will go towards a new creative economy fund.
Overall departmental spending is $8.9 billion, up a scant 0.7 per cent over last year, which is mainly due to public sector wage increases.
The civil service will see the elimination of 320 full-time equivalent jobs mainly through attrition and vacancies as part of a program review calculated to save $119 million. The move has resulted in layoff notices to 163 full-time and seasonal workers as a part of departmental restructuring.
Tobacco taxes will also increase as of Friday, meaning a pack of cigarettes will cost smokers about $0.50 more.
Spending on health will rise 0.8 per cent, the smallest increase in a decade. The government says it will spend $2 million on 450 more orthopedic surgeries, while $700,000 will go towards expanding a sexual assault nurse examiner program.
