Nova Scotia’s total gross expenses have grown from $5.32 billion in 1998-1999 to $8.32 billion in 2008-2009, an average annual increase of 4.7 per cent.
Total departmental expenses have grown from $4.41 to $7.35 billion, an annual average increase of 5.4 per cent. Health care continues to be the largest expense for Nova Scotia at $3.193 billion in 2008-2009 with an average annual growth of 6.6 per cent.
This is followed by Education at $1.491 million with an average annual growth of approximately 3 per cent, and Community Services at $908 million with an average annual growth of 4.1 per cent.
Other departments have grown in total from $998 million in 1998-1999 to 1.757 billion in 2008-1009, representing an average annual increase of approximately 7.3 per cent.
Total gross debt servicing costs were $909 million in 1998-99 and are $886 million today - a reduction of $23 million.
Total 2008-2009 expenses for the Province of Nova Scotia are forecast to be $8.317 billion, as of the December 2008 budget forecast update.
Departmental expenses make up 88.4 per cent of the total, at $7.349 billion. These include:
- $3.193 billion for Health, 38.4 per cent of total expenses
- $1.491 billion for Education and Universities, 17.9 per cent
- $908.5 million for Community Services, 10.9 per cent
- $1.757 billion for all other departments, or 21.1 per cent
Debt servicing costs are forecast to be $886.4 million, or 10.7 per cent of expenses.
The Pension Valuation Adjustment (PVA) is forecast to be $81.3 million, or 1.0 per cent.
Expense ChallengesThe Province of Nova Scotia’s expenses will increase in 2009-2010 as the cost of delivering programs and services goes up – particularly in large areas such as health and education.
Commitments for salaries and wages account for some 50 per cent of total spending, and increases are part of negotiated collective agreements. A 1 per cent increase in wages results in approximately $40 million in additional expenses.
Expenses for Health and Education amount to $4.7 billion or 56 per cent of total government spending. Demand for more health services – combined with an aging population – is contributing to rising costs. And even though the overall student population is declining, educational facilities must be maintained and students taught.
Government will also face additional costs to address economic problems. A stimulus package will be included in the budget, and government is anticipating higher expenses for social programs, business supports, education and workplace training, and pension costs for 2009-2010.
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