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Nova Scotia: Budget 2026

Deeper Deficits and Higher Debt Risk More Leaks in the Fiscal Ship

February 24, 2026
Randall Bartlett, Deputy Chief Economist • Kari Norman, Senior Economist • LJ Valencia, Economist

Nova Scotia’s Budget 2026–27 made clear that the Maritime province has seen a deterioration in its fiscal outlook since this time last year. Deficits are projected to surpass $1.2B this year and next, as expenses top prior budget projections and revenues are broadly unchanged. Deficits should remain elevated thereafter. Keep in mind, the Fiscal Stability Plan aims to limit spending growth and find savings of as much as $2.6B over four years. Despite this, larger deficits and an accounting change for long-term care (LTC) facilities are forecast to push the net debt-to-GDP ratio to 35.0% this year—up from a projected 34.3% in the prior budget. It’s expected to continue this upward trajectory, rising to 39.4% in the 2026–27 fiscal year (FY27) and ultimately reaching 45.4% by FY30. That risks pushing this key debt metric above Ontario or Quebec levels. S&P had given a negative watch recently largely in anticipation of these developments, but other agencies have not adjusted their ratings recently.

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Nova Scotia: Budget 2026 (PDF, 393 KB)
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.