What this budget means for Nova Scotia
March 22, 2007


Managing Canada’s $1.5 trillion economy means making choices and striking the right balance. In Budget 2007, we have achieved this by balancing the budget, cutting taxes for working families, investing in priorities like health care, the environment, infrastructure, and restoring fiscal balance by giving provinces the resources they need to deliver the front-line services that matter to Canadians.

For the Province of Nova Scotia

Restoring fiscal balance brings federal support for Nova Scotia to $2.4 billion in 07-08, including:

  • $1.3 billion under new equalization system;
  • $130 million in Offshore Accord offsets;
  • $639 million under the Canada Health Transfer;
  • $277 million for Canada Social Transfer includes additional funding for post secondary education and childcare; and,
  • $73 million for Infrastructure.
  • $24.2 million is available to the Nova Scotia government through the Patient Wait Times Guarantee Trust over the next three fiscal years.
  • $8.5 million is available to the Nova Scotia government to implement a human papilloma virus (HPV) immunization program to combat cervical cancer over the next three fiscal years.
  • $23.2 million in gas tax funding for municipalities in Nova Scotia in 07-08.
  • $2 million in corporate income tax relief from changes in capital cost allowances for buildings.
  • $7 million in additional corporate income tax relief from the temporary two-year write-off for manufacturing equipment over next two years.
  • Nova Scotia will receive $42.5 million from the Canada ecoTrust for Clean Air and Climate Change.


For Nova Scotians

  • New $2,000 Child Tax Credit will save Nova Scotia parents $39.6 million.
  • Increase in basic spousal amount will provide an estimated $8.3 million in tax relief to a supporting spouse or single taxpayer supporting a child or relative.
  • The Working Income Tax Benefit will benefit workers of Nova Scotia with $17.8 million in tax relief.
  • Nova Scotia farmers will receive approximately $10 million under new initiatives in Budget 2007.
  • Increasing the RRSP and Registered Pension Plan maturation age will save Nova Scotia taxpayers $900,000.
  • Approximately $1.9 million in tax savings for farmers, fishers and small business owners through increased Lifetime Capital Gains Tax Exemption to $750,000.
  • $15 million for the Life Science Research Institute in Halifax.
  • $19 million to support the health of our oceans by creating nine additional marine protected areas, including Sable Island on the Eastern Scotian Shelf.

National programs that will benefit the people of Nova Scotia also include:

  • $20 million for managing the First Nations fisheries.
  • $39 million for fisheries scientific research.
  • $324 million for the purchase of six large vessels for the Coast Guard.

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