HALIFAX, NS: The Canadian Taxpayers Federation is disappointed in the Nova Scotia’s Budget 2022-23 that fails to provide relief to families hard hit by inflation.

“When Premier Tim Houston said ‘everything is on the table’ to help Nova Scotians deal with the high cost of living, we didn’t think doing nothing would be his preferred option,” said CTF Interim Atlantic Director Renaud Brossard. “Not only is Houston failing to reduce taxes for Nova Scotians, his budget keeps profiting from inflation-based tax hikes known as bracket creep.”

The consumer price index has risen by 5.7 per cent over the last year in Nova Scotia according to data from Statistics Canada.

By failing to index tax brackets to inflation, the government of Nova Scotia has been pushing people into higher tax brackets, even if they don’t have more money in real terms. This is referred to as bracket creep.

Only Prince Edward Island, Nova Scotia and Alberta fail to index any of their tax brackets to inflation.

The budget also shows government spending continues to go up.

“With interest rates climbing, now is the time to rein in budget deficits, not grow them,” said Brossard. “Unfortunately, young Nova Scotians are the ones who will bear the cost of large deficits and the province’s growing debt.”

The government of Nova Scotia is projecting a $506 million deficit this year. This contrasts with the expected $108 million surplus projections last year. Government projections show no plan to balance the budget.

The province’s debt is expected to go up to $18.4 billion from $16.8 billion. Interest payments will cost Nova Scotians $676 million in the upcoming year.