The 2025-26 Nova Scotia Budget
Newly-minted Finance Minister John Lohr delivered his first 2025-26 Nova Scotia budget today, on the heels of last fall’s successful re-election bid of the Nova Scotia Progressive Conservatives led by Premier Tim Houston. This year’s fiscal plan focuses on key government priorities and emphasizes economic renewal.
Overview
With revenues of $16.5 billion and expenses of $17.6 billion, Budget 2025-26 estimates a deficit of $697.5 million (after $365.6 million in consolidation and accounting adjustments) before contingency.
Key items include:
- $3 million for preparatory work to create a successful pathway to offshore wind development and harness the power of Nova Scotia’s wind resources
- $8 million for Nova Scotia Loyal to make it easier for Nova Scotians to buy local
- Support for Nova Scotia’s small businesses to give them a competitive edge:
- reducing the small business tax rate from 2.5 per cent to 1.5 per cent April 1, 2025
- increasing the small business tax rate income threshold from $500,000 to $700,000
- $49.5 million this year towards the province’s $100 million plan to create good-paying jobs in the skilled trades workforce
- $39 million to continue supporting the Nova Scotia film industry, including $14 million to complete the Washington Black television series
- $35 million for Nova Scotia’s Climate Change Plan for Clean Growth, to help Nova Scotia businesses create green jobs and adapt to the impacts of climate change. Some $30.1 million to continue More Opportunity for Skilled Trades (MOST) tax refund program for workers under the age of 30 in high-demand occupations, including skilled trades, film and video, and nurses
- $2.4 million for the second year of the Atlantic Vet College funding agreement to train more veterinarians, a total of $50.8 million over five years
Affordability Measures
In addition to removing tolls on the two bridges which connect Halifax to Dartmouth, the government also announced other affordability measures which include:
- Reducing the HST by 1 per cent starting April 1, 2025
- Increasing the basic personal amount for all Nova Scotians from $8,744 to $11,744 starting January 1, 2025
- Implementing the first year of indexing tax brackets starting January 1, 2025
- Increasing minimum wage by $1.30 to $16.50 on October 1, 2025, starting with an increase to $15.70 on April 1, 2025
- Increasing the amounts provided for the school food program.
Poverty reduction and housing insecurity were also addressed, including a $10 million increase to index the Income Assistance rate to help people with rising costs. $10.5 million more is being devoted to those experiencing or at risk of homeless.
$88 million has been earmarked to build, renovate and maintain public housing across the province. $73.9 million is allocated to provide 8,900 rent supplements to Nova Scotians, an increase of 400 over last year. A rebate of the provincial HST on new, purpose-built rental housing will also be available, at an estimated cost of $54.1 milllion.
Healthcare Reform
Healthcare reform has been a priority of the Houston government since it came to power in 2021. Notable healthcare investments include:
- providing free shingles vaccine to Nova Scotians over age 65, making hospital parking free, and moving forward with the largest healthcare build in the history of the province.
- $750.9 million for the Halifax Infirmary Expansion Project and Cape Breton Regional Municipality Health Care redevelopment project (capital)
- $131.9 million for construction and renewal of other hospitals and medical facilities including projects in Amherst, Yarmouth, South Shore and at the IWK Health Centre in Halifax (capital)
- $90.9 million for One Patient, One Record to enable a digitally supported patient-centered health system (capital)
- $54 million ongoing funding for initiatives that move the province toward publicly funded universal mental health and addictions care for all Nova Scotians
- $42 million for Nova Scotia Health to repair and replace medical facilities (capital)
- $35 million increase for COVID-19 vaccine, no longer funded by the federal government, and RSV immunizations
- $26.5 million this year to provide the Seniors Care Grant to help older Nova Scotians live better lives at home and in their communities
- $22 million for establishing the Physicians Retirement Fund to encourage physicians to stay and work in Nova Scotia
More information on this year’s Nova Scotia budget can be found at the following link: Budget 2025 to 2026 – Government of Nova Scotia, Canada