HALIFAX: In this year’s budget, Nova Scotia is forging a path toward powering its future, building stronger, healthier communities and ensuring the province’s fiscal sustainability.
Finance and Treasury Board Minister John Lohr tabled Budget 2026-27: Defending Nova Scotia on February 23.
“We have invested heavily to make up for more than a decade of underspending that led to one crisis or another – in healthcare, housing and affordability. We have worked hard and made major gains,” said Minister Lohr.
“This year’s budget is about continuing to invest in the strategic priorities that will drive the province forward and build our economy.
“At the same time, we are planning for the long term to reduce expenses and keep our province on strong fiscal footing.”
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Budget 2026-27 continues to make life more affordable, with $681.2 million to continue tax saving measures that will save the average family more than $1,400 this year.
It includes support for healthcare, housing and transformational IT projects in cybersecurity.
With revenues of $17.3 billion and expenses of $18.9 billion, Budget 2026-27 estimates a deficit of $1.19 billion (after consolidation and adjustments) before contingency.
Highlights include:
Growing Our Economy – Powering Our Future
– $3.6 million more to continue implementing the Green Hydrogen Action Plan and to support offshore wind development, leading to transmission through Wind West
– $25 million this year, for a total of $30 million, for the Subsurface Energy Research and Development Investment Program with Dalhousie University, to research onshore natural gas deposits and help ensure responsible exploration and development
– $8 million to support forestry contractors and private woodlot owners to move low-grade wood to market and lower wildfire risk
– $5 million to expand the Innovation Rebate Program to accelerate sustainable economic growth in the natural resource, clean energy, advanced manufacturing and defence sectors
– $1.5 million for Invest Nova Scotia to drive more GDP growth in six priority sectors
– $1.5 million for an innovation hub to help accelerate growth and improve productivity in Nova Scotia’s seafood sector
– $2.5 million to help businesses diversify their trade markets
– $1.6 million this year, as part of a $4-million three-year investment to expand market diversification initiatives to help exporters build capacity to operate in new markets, including the launch of a new market diversification funding program for seafood and agri-foods
– $1 million in targeted programs to attract and convert investment attraction in Nova Scotia’s strategic sectors
– $958,000 to enhance air access between Maritime provinces and better connect businesses and travellers in the region.
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Empowering People – Building Futures and Communities
– $6.8 million to contract four dedicated fixed-wing water bombers for Nova Scotia for wildfire operations
– $3 million to improve fire services across the province
– $10.9 million more to help people facing gender-based violence with rent supplements, for a total of $13.8 million to support 1,000 supplements, part of more than $115 million in gender-based violence supports this year
– $40 million in continued provincial investment to support ongoing child-care transformation
– $59.1 million in new funding to transform disability support and transition adults with disabilities to community living as part of the Nova Scotia Human Rights Remedy
– $496,000 to support community projects to address systemic hate, inequity and racism
– $300,000 to establish an Office for Children and Youth
– $46.4 million to build new public housing units and maintain existing units (operating and capital)
– $18.5 million to support shovel-ready, community-owned projects through the Affordable Housing Development Program
– $18.1-million provincial investment to address housing needs through the National Housing Strategy Action Plan
– $25.2 million to create 378 new supportive housing units across the province
– $9.6 million to create 75 more emergency shelter beds and enhance supports for Nova Scotians experiencing homelessness
– $5 million more, for a total of $77 million, that will increase the number of active rent supplements to 10,500
– $681.2 million to continue tax saving measures that will save the average Nova Scotian family more than $1,400 a year in 2026-27
– $100.4 million for breakfast and lunch programs in Nova Scotia schools, offering all students nutritious and affordable meals
– $56.5 million in student assistance, an increase of $6.7 million, to help more than 40,000 post-secondary students
– $32.5 million for the Heating Assistance Rebate Program, permanently increasing the amount to $400 per year to help Nova Scotians in need pay for home heating.
Rebuilding Care – For a Healthier Nova Scotia
– $84.8 million to continue to improve primary care, including recruiting more family doctors, physician assistants, nurse practitioners and family practice nurses
– $47.5 million to hire more paramedics and emergency medical responders across Nova Scotia, improving emergency care
– $40.1 million for the Multidisciplinary Oncology Partnership, diagnosing cancers earlier, with better treatments for patients (operating and capital)
– $47.1 million to pay more to hard-working family doctors, including those who take shifts in long-term care facilities, hospitals and emergency departments in Nova Scotia’s rural community hospitals
– $9.6 million for digital tools to help Nova Scotians find and access the healthcare they need and to make it easier for providers to communicate with each other
– $233.5 million to continue rolling out One Patient One Record across the province (operating and capital)
– $11.8 million to retain critical physician specialists
– $8 million more for the Universal Mental Health and Addictions Care Insured Services program to expand services across the province
– $873.8 million toward the plan to build 5,700 new and replacement long-term care spaces by 2032, with seven new facilities opening this year (capital)
– $26.5 million more for the Home Support Direct Funding Program
– $26.5 million in continued funding for the Seniors Care Grant to support older Nova Scotians at home and in their communities
– $10.2 million more to deliver home care services to Nova Scotians.
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Building a Financially Sustainable and Resilient Province
– $33.8 million for cybersecurity enhancements, including establishing a new Cyber Security Office to improve cyberthreat detection and response (operating and capital)
– $5.5 million for AlayaCare, a new provincial technology platform to better connect the home care sector to support front-line staff and provide quality care, faster for Nova Scotians
– $4.4-million investment to establish artificial intelligence capabilities, including developing and deploying AI-enabled applications
– $2.6 million to increase public safety and enhance provincial policing with a single records system for all police
– $1.2 billion for the Halifax Infirmary Expansion Project and Cape Breton Regional Municipality Health Care redevelopment project (capital)
– $144.5 million for construction and renewal of other hospitals and medical facilities in Amherst, Yarmouth, Bridgewater and the IWK (capital)
– $476.1 million for highways and structures (capital).
Budget 2026-27 also introduces a four-year fiscal sustainability plan to contain expense growth. This includes a five per cent civil service reduction and a three per cent reduction in the broader public service, which includes Crown corporations, regional centres for education and other entities.
“We value our hard-working public servants, but government needs to become more focused and efficient,” said Minister Lohr. “We will protect core front-line services that Nova Scotians rely on and work to right-size government through attrition wherever possible.”
Approximately 1,000 full-time jobs spread across government and the broader public sector, will be cut.
Quick Facts:
– additional appropriations related to the 2025-26 budget forecast total $47.4 million since the December forecast update
Additional Resources:
Budget 2026-27 documents are available at: https://novascotia.ca/budget