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Nova Scotia surplus tightens to $12.1 million on shrinking revenues

HALIFAX _ Nova Scotia’s projected surplus is now $12.1 million _ a figure down $5 million from the razor thin surplus estimated in the April budget.

The province says the slight reduction is due to a $72.9 million decrease in revenues due to a delay in construction of the Halifax Convention Centre and lower tax revenues.

Forecasted tax revenues are down $45.5 million due to reductions in the amount of personal income tax, motive fuel tax and HST collected.

The province also says it will have to spend an estimated $17.5 million to respond to damage caused by October’s flooding in Cape Breton.

Finance Minister Randy Delorey says the province remains committed to its fiscal plan of maintaining a balanced budget and adds it would be unfair to pass labour costs connected to services on to taxpayers.

His comments come a day after members of the Nova Scotia Government and General Employees Union voted to reject a tentative agreement.