HALIFAX: The province issued its first public update for Budget 2026-27 on September 24, and released the public accounts for the 2025-26 fiscal year ending March 31, 2026.
Budget 2026-27 Update
The government remains focused on the priorities of Nova Scotians including healthcare, seniors’ care, affordability and building much-needed infrastructure.
This has led the Province to project a $1.4-billion deficit for the 2026-27 fiscal year.
“The costs for the services Nova Scotians need, like healthcare and seniors’ care, are growing, and we’ve made much-needed investments in infrastructure like hospitals, medical equipment, schools and long-term care facilities,” said Finance and Treasury Board Minister John Lohr.
“We remain focused on growing our economy in key sectors like defence and energy so there is more revenue to invest in these services.”
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The next budget update will be in December.
N.S. provides budget updates to the public every September, December and as a final forecast with the following year’s budget.
Public Accounts for 2025-26
The Province ended the last fiscal year with a $1.4-billion deficit.
While revenues were higher than expected in 2025-26, spending outpaced the revenue increase because of the following factors:
– $592.6 million in one-time restructuring costs
– $384.6-million increase in healthcare costs
– $76.3-million increase in seniors’ care costs.
Restructuring includes funding for anticipated commitments that have not yet been finalized. Once they are finalized, these costs can be made public.
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Quick Facts:
– 12 departments and other entities required additional appropriations totalling $523.1 million at the 2025-26 year-end
– in the first quarter of 2026-27, 11 departments and other entities required additional appropriations totalling $249.6 million
– $20.9 million of the Province’s contingency was used for wildfire efforts in 2025-26, reflected in the expenses of the Department of Natural Resources; the remaining contingency amount of $179.1 million was not used
– to date, the Province has not used any of the $50-million contingency for 2026-27
– also today, government entities released reports on compensation of more than $100,000 for individuals as required by the Public Sector Compensation Disclosure Act
