Since 1998-1999, Nova Scotia’s annual revenues have been increasing an average of 5.2 per cent, with provincial sources growing on average 5.5 per cent and federal sources 4.8 per cent.
In 2008-2009, Nova Scotia’s total provincial revenue sources accounted for 64.4 per cent of total revenue at $5.465 billion. Federal revenue sources accounted for the remaining 35.6 per cent at $3.015 billion.
Growth in revenues started to level off in the end of 2008, reflecting the downturn in the economy. These numbers were reflected in the December, 2008, budget forecast update.
As of the December 19, 2008 budget forecast, Nova Scotia is forecasting total revenues of $8.481 billion for 2008-2009, including net income from Government Business Entities (GBEs).
Income taxes are the main provincial source of revenue, totalling $2.171 billion – with $1.784 billion in personal and $386 million corporate income taxes
Harmonized Sales Tax revenues are forecast at $1.156 billion and Motive Fuel Taxes, $247.6 million. Petroleum Royalties are expected to generate $500.8 million.
Revenues generated by GBEs such as the Nova Scotia Liquor Corporation are forecast at $360.9 million and revenues from other provincial sources are $1.028 billion.
Revenue from federal sources makes up 35.6 per cent of Nova Scotia’s budget in 2008-2009. These include:
- Equalization: $1.465 billion
- Canada Health Transfer: $668.7 million
- Canada Social Transfer: $297.1 million
- Crown Share: $95.1million
- Other federal sources = $489.8million