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Projected deficit now a $97M surplus: N.S.

The Dexter government got a temporary reprieve from red ink-stained budget updates yesterday.

The Dexter government got a temporary reprieve from red ink-stained budget updates yesterday.

Finance Minister Graham Steele revealed that while the province originally forecasted a $222-million operating deficit for 2010-11, the updated forecast is predicting a $97.2-million surplus.

Steele explained the $319-million variance was partially due to a series of unforeseen one-time factors, including increased revenues from Nova Scotia’s share of personal income tax ($71.5 million), prior-year adjustments ($97.6 million), and the bump in HST revenues resulting from July’s two-per centage-point hike ($29.7 million).

The province is still projecting a $370-million deficit for 2011-12, however. That’s partially due to university funding, which will return to annual reporting in this spring’s budget.

“Although we are making genuine progress, Nova Scotia has not yet turned the corner when it comes to the underlying structural deficit,” Steele told reporters. Steele also noted every government department, except for Transportation and Infrastructure Renewal, is currently under budget for the year.

 
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