Highlights from Nova Scotia’s 2026-27 provincial budget

HALIFAX – Nova Scotia Finance Minister John Lohr has tabled the province’s 2026-27 budget, which includes a large deficit and job cuts in the public service.

Here are some highlights:

— Total spending is forecast to be $18.9 billion, with a projected deficit of $1.19 billion.

— The budget includes a four-year plan to contain expenses, including a five per cent yearly cut in the civil service and a three per cent cut in the broader public service, including Crown corporations. The government says the cuts will save about $95 million. 

— The province intends to reduce grants to organizations by $130.4 million in an effort to rein in spending.

— Health spending rises to more than $6.7 billion, which accounts for 35.5 per cent of the overall budget.

— A total of $1.2 billion in capital investment for the Halifax Infirmary expansion project and Cape Breton Regional Municipality health-care redevelopment project.

— $144.5 million for construction and renewal of other hospitals and medical facilities in Amherst, Yarmouth, Bridgewater and the IWK in Halifax.

— $47.5 million to hire more paramedics and emergency medical responders, and $47.1 million to pay family doctors who take on shifts in long-term care, hospitals and emergency departments in rural facilities.

— $681.2 million toward a number of measures including keeping tax brackets indexed; increasing basic personal and age amounts; maintaining HST at 14 per cent; and continuing the energy rebate program. The government says these measures will save an average Nova Scotian family more than $1,400 in 2026-27.

— $873.8 million toward the plan to build 5,700 new and replacement long-term care spaces by 2032, with seven more facilities expected to open this year.

— Net debt is expected to be $27.9 billion in 2026-27, which reflects capital investments in the coming year and the anticipated budget deficit. 

This report by The Canadian Press was first published Feb. 23, 2026.