The provinces are expressing skepticism about their budget plans for 2024-2025, with several factors contributing to this outlook. Reduced tax revenues have diminished expectations of robust fiscal performance, while increased healthcare spending has offset some of these challenges. Specific examples include Nova Scotia’s projected deficit jump due to enhanced wildfire response costs and Newfoundland and Labrador’s borrowing needs to cover debt and collective agreements. These developments highlight the provinces’ cautious approach to budgetary planning in the face of economic uncertainties and rising expenses.
Provinces set back optimistic spring budgets as tax windfalls dwindle, with healthcare costs on the rise.
