We won’t complain. Anytime a deficit comes in lower than forecast is good. But Nova Scotians will still have to wait and see whether it’s indication the NDP government is on the right track.
Finance Minister Graham Steele delivered the good news – good after relatively bad times – of a deficit for 2009-10 of $242 million. That’s some relief considering the $488 Steele had predicted for the year.
The finance minister acknowledges it doesn’t necessarily offer some slack to ease up. He’s got that right.
Some have openly speculated whether it might offer room to reconsider the extra two per cent imposed this month on the sales tax. Steele’s reply was that such a move would mean having to come up with the equivalent to be gained by the HST increase. When there’s a $300 million surplus to play with, he said, that might be an option.
Liberal Leader Stephen McNeil went so far as to say Steele had earlier painted a bleak picture to provide an excuse to raise the tax. That seems hardly likely, however, given how unpopular a political move it was.
But there’s more, for the long term.
Just last month it was reported that the province would be up against a flurry of hard bargaining as 73 of 76 agreements with the Nova Scotia Government and General Employees Union – representing 25,000 workers – were set to lapse at the end of June.
They are gradually working their way through these expired contracts. One recent one tentatively accepted by the workers featured a moderate one per cent increase.
That sounds reasonable, perhaps affordable for the province – but only if it continues to enjoy economic growth and no recessionary relapses in coming years. And one might surmise, with the traditional support of unions for the NDP, that they're cutting them some slack for now and will seek a return to greater increases in future contracts.
This government has to continue looking at ways to cut costs in this area, such as a gradual reduction of public employee ranks and reconsideration of what the province can realistically offer in services.
