2026 Nova Scotia Budget: Large Deficits, Higher Debt, and a Push for Fiscal Stability
Nova Scotia’s Budget 2026 projects its largest deficit since 2013/14 at $1.2 billion (1.7% of GDP), with net debt rising sharply toward and beyond 40% of GDP due to higher capital spending, rising interest costs and new long-term care accounting rules. The plan largely builds on existing measures, prioritizing healthcare, infrastructure and tax changes while introducing a Fiscal Stability Plan to slow spending growth and improve public-sector efficiency. Although economic growth and revenues are expected to remain solid, demographic pressures and higher debt servicing costs increase the province’s fiscal and interest-rate risks over the medium term.
