BILL NO. 38

(as introduced)

1st Session, 62nd General Assembly
Nova Scotia
63 Elizabeth II, 2014

Private Member's Bill

Balanced Budget Act

Tim Houston
Pictou East

First Reading: March 31, 2014

(Explanatory Notes)

Second Reading:

Third Reading:

Clause 1 provides a short title to the Act.

1 This Act may be cited as the Balanced Budget Act.

2 Chapter 2 of the Acts of 2010, the Finance Act, is amended by adding immediately after Section 29 the following Section:

29A (1) Notwithstanding Sections 27 to 29 and the Appropriations Act, no public money may be expended in any fiscal year in excess of the expenditures for the immediately preceding fiscal year by more than the estimated percentage increase in the population of the Province and the percentage increase in the previous year in the "all items" Consumer Price Index for the Province prepared by Statistics Canada.

(2) Subsection (1) does not apply

(a) to an expenditure required in the fiscal year because of a natural or other disaster in the Province that could not have been anticipated and that affects the Province or a region of the Province in a manner that is of urgent public concern; or

(b) if the Province has experienced negative growth in its gross domestic product in the two immediately preceding quarters.

3 Chapter 2 is further amended by adding immediately after Section 54 the following Section:

54A The Minister shall not table Estimates in the House of Assembly that project a deficit for the Province for the fiscal year to which the Estimates relate.

4 The Minister shall request the Government of Canada to take the necessary action to reduce from 10% to 8% the tax payable in the Province under subsection 165(2) of Excise Tax Act (Canada).