The string of deficits will increase Nova Scotia’s government debt by nearly 40 per cent from 2019/20 to 2024/25.
Atlantic Canada Prosperity
The provincial government projects a $112 million operating deficit this year.
Government debt interest payments in P.E.I. currently amount to $123 million annually.
Last year was the first in at least 25 years that the province derived no revenue from petroleum royalties.
The three Maritime provinces rely more heavily on federal transfers than any other province.
Among residents who donated, the average annual contribution equalled only 0.45 per cent of their household income.
Nova Scotia recorded the largest government sector at 61.6 per cent of the economy, more than double the optimal size.
Some workers remain unemployed because the benefits are generous.
In 2019, equalization represented 15.5 per cent of provincial revenue in Nova Scotia.
The province's net government debt may rise 17 per cent in 2020/21.
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