The Canadian Taxpayers Federation is calling on the Houston government to rein in spending, stop borrowing and further cut the sales tax. These are the key recommendations in the CTF’s pre-budget submission for Nova Scotia.

“Government spending in Nova Scotia is at record levels and there’s no plan to stop adding to the debt until at least 2029,” said Devin Drover, CTF Atlantic Director. “The Houston government needs to start living within its means.”

The province is planning to borrow $1.2 billion this year, an increase of $528 million from projections in spring 2025.

To tackle the growing debt, the CTF recommends:

·      A comprehensive spending review of government operations

·      Ending corporate welfare

·      Reducing bureaucrat compensation to private-sector levels

·      Cutting non-health spending to 2022 levels.

Together, these measures would save nearly $1.8 billion, which is enough to stop borrowing and begin reducing the debt next year.

The CTF also recommends tax relief to boost economic growth.

“Premier Tim Houston did the right thing by cutting taxes last year, but Nova Scotians are still finding it harder than ever to make ends meet,” said Drover. “That’s why Houston should go further by cutting sales and business taxes so taxpayers can keep more of their own money.”

The CTF is calling for a 1.5 percentage point cut to the HST, saving the average household $526 a year and bringing Nova Scotia’s provincial sales tax below the national average.

For businesses, the CTF recommends scrapping corporate welfare and replacing it with a 20 per cent reduction in business tax rates, which would make Nova Scotia’s rate the second lowest in Canada.

The Nova Scotia government’s pre-budget consultation process is open until Dec. 12, 2025.

The CTF’s full pre-budget proposal is available HERE.