Nova Scotia deficit reaches $1.44 billion as spending rises: 'expenses is outpacing the growth in revenue'

Advertisement 1 This advertisement has not loaded yet, but your article continues below. Breadcrumb Trail Links HomeAtlantic CanadaNewsNova Scotia Nova Scotia deficit reaches $1.44 billion as spending rises: 'expenses is outpacing the growth in revenue' Finance Minister John Lohr defended the higher spending, citing health and long term care costs. Author of the article: By Ally Bowes Published Sep 24, 2026 3 minute read John Lohr, provincial finance minister said the province is working to slow spending as the provinces deficit continues to grow PHOTO BY TIM KROCHAK /THE CHRONICLE HERALD Article content Nova Scotia’s already record deficit has grown even larger, but the government defends spending beyond the budget by saying it is needed to meet the demands of services. Article content At the first budget update for 2026-27, the province announced the projected deficit sits at $1.44 billion, an increase of $195.7 million from the approved budget.   Article content Article content Finance Minister John Lohr said the government is trying to slow the growth of spending while balancing the services Nova Scotians need.  Article content Article content “Right now, the growth in expenses is outpacing the growth in revenue,” Lohr said Thursday. “So we’re working hard to slow our growth in expenses, and we’re working hard to increase our growth in revenue.”  Article content Revenues up, expenses up even more Article content According to the province, revenue is holding steady but expenses keep rising.  Article content Compared to what was approved in the budget, forecast revenue increased by about 0.02 per cent, or about $2.8 million, to around $17.3 billion.   Article content Expenses have increased 1.1 per cent, or about $208 million, to about $19.1 billion.  Article content Included in the total is an increase of about $191 million to departmental expenses, with the departments of Health and Wellness and Seniors and Long-Term Care having the most significant changes from estimates.  Article content Health spending increased by $125.3 million from estimates, driven mainly by increased use of physician care, emergency services and prescriptions.  Article content Spending in long-term care similarly increased because of service demand, with costs rising by $62 million.  Article content Article content “Where we have seen extra spending is really departments that deal with utilization, with the number of people coming through the door,”…