Nova Scotia government spent $1.9 billion more than what legislature approved

HALIFAX — The Nova Scotia government says it spent a record $1.9 billion more than what the provincial legislature had approved for the 2025-26 fiscal year.

Finance Minister John Lohr said there are plenty of reasons why the Progressive Conservative government spent so much money on what the government describes as additional appropriations.

“We need to be flexible as a government, and we will continue to do that,” he said during a news conference Thursday.

Additional appropriations refer to extra spending that is not included in the budget, but is approved by cabinet without a vote in the legislature.

The province’s auditor general has repeatedly called for stronger oversight on how the government spends money not included in the budget.

Lohr said much of the additional spending in the most recent fiscal year went to health care services and seniors.

The government also used some of that additional funding to cover the $40.4-million cost of public works projects and another $13.8 million on emergency management for the 2025 wildfire season.

The Department of Finance also said the increased spending includes $420 million in funds that were set aside for some anticipated commitments which have not yet been finalized and, as a result, cannot be made public.

Lohr would not say if this was related to a previous government’s wage restriction bill that was deemed unconstitutional.

Bill 148 was passed by former Liberal premier Stephen McNeil to limit pay increases in 2015, and a Supreme Court judge decided it was unconstitutional in February.

“In terms of Bill 148, I can say that we have until February of this coming year to reach a settlement, we are working on that,” Lohr said.

Officials declined to comment on how much this settlement may cost, because the matter is before the courts.

The province closed the 2025-26 fiscal year with a record-high deficit of $1.4 billion. While revenue was slightly higher than expected, at just under $18 billion, it was outpaced by $19.4 billion in spending.

Net debt hit $24.1 billion.

For the 2026-27 fiscal year, the province is anticipating a $1.44 billion deficit.

Opposition parties slammed the Progressive Conservative government for its growing deficit and reliance on out-of-budget spending.

Interim Liberal leader Iain Rankin said Thursday’s update highlights the government’s inability to manage spending.

“We see a dozen departments, again, overspending and not going to the legislature to get approval. This is a government that loves to spend and there’s no accountability on the spending,” Rankin told reporters.

“It’s unprecedented,” he added.

NDP finance critic, Lisa Lachance, said the province needs to look critically at its spending.

“This government has dug a generational hole for Nova Scotians in terms of deficit spending, debt, debt servicing costs. And yet people still aren’t getting what they need,” Lachance said.

The NDP member said the province continues to deal with crises in health care and affordable housing, despite significant government spending.

Lohr said Nova Scotians remain concerned about affordability, housing, health and seniors’ care, and the government has focused on spending in these areas.

“There are still so many things we want to do for Nova Scotians, and to do that we need to grow our economy. I believe we have the fundamentals required for growth in defence, in clean energy, in housing, and in natural resources,” the finance minister said.

This report by The Canadian Press was first published Sept. 24, 2026.

Lyndsay Armstrong, The Canadian Press