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Nova Scotia Budget Keeps Eye on Health Care While Preparing for a Possible Trade War

February 19, 2025

Nova Scotia Budget Keeps Eye on Health Care While Preparing for a Possible Trade War

 

February 19, 2025 – The Nova Scotia Government tabled its 2025/26 provincial budget totaling $17.6 billion on Tuesday, February 18, including heavy investments in health care, housing, and business support in the wake of U.S. tariff threats and continued lack of affordability.

The budget is the first since the Tim Huston Progressive Conservatives were re-elected to a majority government last fall. In a budget that includes a $200 million contingency fund in case of a trade war, significant tax relief for small businesses to help spur the economy, and a 1% reduction in HST to 14% to help consumers, the government’s focus on health care remains steady. In total, the province expects the budget to result in a $697.5 million deficit, assuming its $200 million contingency fund goes unused. 

The government had run on a plan to improve health care in 2021 and has repeatedly invested in operations and major infrastructure since then. The newest budget presents another significant increase in spending for health care – nearly 8%, reaching nearly $6 billion with $440 million more earmarked for the sector. 

The largest increases are in capital funding, as the government commits $412 million to building and improving hospitals and health care spaces across the province, about $103 million more than in 2024/25. This includes $750.9 million for the Halifax Infirmary expansion project and Cape Breton Regional Municipality Health Care redevelopment project. 

Also included in the capital spend is $90.9 million for “One Patient, One Record” project, to enable a digitally supported health system, replacing 80 digital systems currently in use. The project, which was awarded to vendor Oracle Cerner in 2023, is expected to launch its first wave in August.  

Health Authorities Operational Increases

Nova Scotia Health and the IWK, the province’s two health authorities, are set to receive relatively smaller increases in operating grants compared to capital funding. NS Health is budgeted to receive a 5.6% increase in funding, totaling just shy of $3 billion, while the IWK is budgeted for nearly $279 million, a 3.5% increase. 

Ambulance services were noted with a $40 million increase in spending, increasing from $185 million to $225 million. 

Funding for pharmaceutical coverage, however, saw a slight decrease from $399,902 in 2024/25 to $399,727 in 2025/26, likely due in part to a $25 million underspend forecast for 2024/25. 

However, the budget does introduce $26.9 million to deliver free shingles vaccines to Nova Scotians age 65 and older.

Housing Funding

In addition to direct health funding, and following up on their historic capital plan announced last week, the provincial government is investing in the first public housing expansion in 20 years, with $36.8 million earmarked for 222 public housing units. This is the third year of a $94.9 million five-year investment in housing. 

There will also be $10.6 million toward an additional 242 units to further expand public housing as part of a $136.4 multi-year investment. $73.9 million will provide 8,900 rent supplements, an increase of 400 over last year.

Health Highlights

Infrastructure and Capital Expenditures:

  • $750.9 million for the Halifax Infirmary Expansion Project and Cape Breton Regional Municipality Health Care redevelopment project
  • $131.9 million for the construction and renewal of other hospitals and medical facilities including projects in Amherst, Yarmouth, South Shore, and at the IWK Health Centre in Halifax 
  • $90.9 million for One Patient, One Record to enable a digitally supported patient-centered health system
  • $42 million for Nova Scotia Health to repair and replace medical facilities
  • $32 million to repair and replace medical equipment 
  • $19 million for free parking at Nova Scotia Health hospitals and the IWK for employees, patients and visitors
  • $15.3 million for Diagnostic Imaging equipment

Service Investments:

  • $1.6 million this year to expand dialysis in Liverpool and Pictou 
  • $54 million toward publicly funded universal mental health and addictions care
  • $4.2 million increase to improve cancer care treatment with new digital imaging technology part of the $230.0 million 10-year agreement
  • $2.1 million for LifeFlight
  • $2.3 million increase, for a total of $10.4 million, to support Nova Scotians with
  • $35 million increase for COVID-19 vaccines diabetes by expanding coverage of sensor-based device glucose monitors and the insulin pump program
  • $22.1 million more this year to continue to provide health care services at The Bridge, and integrated services shelter for those experiencing housing insecurity

Support for Seniors:

  • $26.9 million to deliver free shingles vaccine to Nova Scotians age 65 and older
  • $45.8 million toward the plan to build 5,700 new and replacement long-term care spaces by 2032. 
  • $26.5 million this year to provide the Seniors Care Grant to help older Nova Scotians live better lives at home and in their communities
  • $4.9 million to create more permanent nursing home spaces for seniors needing long term care

Health Care Recruitment:

  • $22 million for establishing the Physicians Retirement Fund to encourage physicians to stay and work in Nova Scotia
  • $10.7 million for the Physician Assessment Centre of Excellence (PACE) to license more doctors
  • $3.5 million to continue the expanded nursing training programs, as part of a four-year commitment to add 80 seats for nursing students 
  • $2.3 million increase for the Patient Access to Care Act to recruit more doctors and health care professionals