On Wednesday, February 19, Finance Minister John Lohr tabled this year’s $17.6 billion budget for the government of Nova Scotia. This is the first budget since Tim Houston’s PC’s won an historically large majority in November 2024. Houston’s first term was focused on healthcare solutions whereas he sought a new mandate to address affordability issues in the most recent election. Since that time, the U.S. tariff threat has led the Houston government to push out counter measures such as buy-local campaigns and removing U.S. products from the shelves of crown liquor stores. Houston also recently announced a push for more natural resource development, which may include re-examining bans on fracking, oil and gas exploration in certain areas, and mining uranium. In reference to this push, which includes process reforms and incentives, Houston said that “it’s time to take the ‘no’ out of Nova Scotia.” Budget 2025 includes $500,000 for a critical minerals strategy.
Finances + taxes
Nova Scotia’s deficit is projected to be $698 million. The government is projecting the debt to grow by more than $9 billion in the next four years. The focus is on stimulating growth and providing unprecedented tax relief to Nova Scotians (more than $500 million worth of tax relief). Tax measures 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, and implementing the first year of indexing tax brackets starting January 1, 2025. The government estimates the combined measures will save an average Nova Scotian family more than $1,000 this year. Small businesses will also see their income threshold increase from $500,000 to $700,000 and their tax rate reduced from 2.5 per cent to 1.5 per cent.
Healthcare
Healthcare continues to receive significant new investment, including $751 million for the Halifax Infirmary Expansion and Cape Breton Regional Municipality Healthcare redevelopment. $132 million will go to health facility development and construction in Amherst, Yarmouth, South Shore and at the IWK Health Centre in Halifax (capital). Building on Nova Scotia’s record of eHealth leadership in the Atlantic region, there is $91 Million for One Patient, One Record to enable a digitally supported patient-centered health system (capital). Other campaign promises included in the budget include paying for the shingles vaccine for people 65 and older ($26.9 million) and making parking at health-care sites free ($19 million). The government will also pay for a new RSV immunization program for children ages two or younger and people 75 or older ($6.9 million).
Affordability + education
Nova Scotia’s minimum wage will increase by $1.30 to $16.50 on October 1, 2025, starting with an increase to $15.70 on April 1, 2025. The PCs will also keep their November election promise to remove the tolls from the Angus L. Macdonald Bridge and the A. Murray MacKay Bridge in Halifax on April 1, 2025. The Nova Scotia school lunch program will see a $61.3 million increase this year, for a total of $80 million, to expand the school lunch program to an additional 77 schools, reaching all middle and junior high students in the province.
The Income Assistance rate will be indexed to respond to rising costs. There was also additional funding for disability support systems and employment support services such as skills development, connection to jobs and preventative programming for youth. There is a $10.5 million increase, for a total $130.5 million this year, to support Nova Scotians experiencing or at risk of homelessness.
The government is investing $210.0 million to build and renovate schools, including three schools that will open in the 2025-26 school year: École Baie Sainte-Marie in Clare (CSAP), École sur la péninsule d’Halifax (CSAP) and St. Joseph’s-Alexander McKay Elementary School (HRCE) in Halifax.
New markets + resilience
In addition to the critical minerals strategy, the province is investing in trade and market strategy and diversification in the face of the tariff threat. This includes seeking new international markets for Nova Scotia seafood, facilitating internal trade, and an $8 million “Nova Scotia Loyal” program to encourage buying local.
Industry resilience was also a heavy theme – with additional funding for crop insurance, fisheries enforcement and the local film industry. Nova Scotia’s climate change plan received $35 million. The plan includes money for net zero homes, community solar, tidal power research, clean farming tech, and business energy efficiency.
Links
- Budget speech
- Budget highlights
- Business Plan Budget 2025-2026
- Estimates and supplementary detail
- February Budget 2025 – budget forecast update (additional appropriations)
For more insights on the Nova Scotia election, connect with Senior Consultant Liam O’Brien.
