Is this an election budget?

Governments table budgets for a number of reasons. The first one is to obtain revenue so the government can continue its programs. The second is to redistribute wealth from the fortunate to those further down the economic scale. The third is to establish new policies and programmes. Fourth is to pay down the debt left from previous budgets.

Currently, Canadians desire that the budget be balanced. This was not always the case. Numerous Canadian governments, including those led by Pierre Trudeau, Bob Rae and John Buchanan, left large deficits to their successors. According to the budget tabled last week, the current Nova Scotia debt is $12,336 billion with a planned reduction this year of only $12.3 million.

At the time, it is unclear if this budget, when it is voted upon in mid-May, will be supported by the Liberals or the NDP. If both of these opposition parties do not support it, we will have another of what Mike Duffy calls Nova Scotia’s favourite sport, an election.

Most importantly, this budget is said to be balanced. It’s a rather conservative document lacking in innovation and planning. True, the drug Avastin will be covered, which is welcome news to those families with a member fighting colorectal cancer.

The revised student loans program will benefit a number of students and their families. When the ‘Healthy Living’ tax credit is expanded next year, will one be able to deduct their Ken-Wo dues?

The premier, who condescendingly tells us to ‘take the bus’ has promised us a Transit Tax Credit, so helpful for those living in Hall’s Harbour. Why must we wait ‘til 2011 for the basic personal amount tax credit to be indexed?

Ottawa has done this for years. Bob Stanfield led the way for this reform when he was in Ottawa. Furthermore, as Mr. Harper has shown us, a new government can cancel the promises of its predecessor as Harper did with the Kelowna Accord.

Forty-five per cent toward health care

Forty-five per cent of this budget is directed toward all aspects of health care. In other words, Nova Scotia, like other provinces, is budgeting almost half of its income for one department.

An examination of previous budgets shows us that the costs of health care continue to increase at an alarming rate. Add to this the fact that Nova Scotia has one of the largest populations of seniors of any province and you know that the costs will continue to increase.

Yet there is nothing in the document that indicates the government is aware of this. True, it has acknowledged it in other places, but the budget is the primary planning document. Politicians and civil servants alone are not going to solve our health crises, including waiting lists. It’s time to take health care out of partisan politics and place it in the hands of experts, including physicians, nurses, public servants and ordinary citizens. To Mr. Harper’s credit, Ottawa has done this for mental health with the establishment of the Kirby Committee.

Incidentally, seniors should be disappointed and angry as the budget promises only $262 million over 10 years to help address the health needs of seniors. That is $26 million a year, a drop in the bucket for those seniors waiting for hip replacements or other procedures.

During the last election night telecast, Jane Purvis, a former Hamm Cabinet Minister and Special Assistant to the Premier, remarked, “Conservatives win by paving roads and they cannot do this in the HRM.”

This budget provides for $430 million to help build, maintain and pave highways and roads. It is true that many of our highways are in deplorable condition and others have become dangerous because of the increased traffic load. A tire merchant remarked recently, ‘your new tires should be good for 100,000 kilometers, but given the condition of our roads you will probably only get between 60,000 and 70,000 kilometers.’

So our roads do need work. The question is, will these funds be spent in Conservative constituencies or on the basis of need? Remember, the Conservatives win in the rural areas where these funds will be spent, not in the cities where there are few Conservative MLAs.

High tax could hurt tourism

It would appear that the two major political issues arising immediately from the budget are the refusal to cut the provincial tax on all petroleum products and the changes to the Heating Assistance Rebate Programme. The Premier says he needs the taxes to build roads, but has Ms. Purvis pulled the rug out from underneath him on this point?

The high tax, higher than in New Brunswick, for example, may have a negative impact upon tourism this summer as well as the recruitment of new business or the expansion of existing ones.

For the Liberals and New Democrats to argue against the changes in the rebate program makes good politics. But to look at the matter objectively, the introduction of a means test into this program makes good sense even if it’s bad politics.

There are many people in all parts of this province who need this assistance. Indeed, one might argue that the amounts stated in the budget are miserly and the government should be prepared to make alterations as energy prices increase. This change in policy is a good example of government using a budget to make necessary amendments to existing social policies.

Currently, the economy is not very robust, especially in the United States. The high costs for both energy and food make it very difficult for governments to predict the direction of the economy and their own income from taxes and services.

In one respect, Nova Scotia has lost most of its ‘rust bucket’ industries while Ontario is just going through this economic upheaval. The high prices for petrol energy are a real benefit to this province’s offshore.

Thus, in some respects the minister, who deserves our thanks for sticking to his post in spite of his own precarious health, is correct to be on the conservative side of the ledger as it is difficult to predict the direction of the economy for the next year.

Will the Budget pass? This really depends on the Liberals. One nominated candidate told me recently they would not be ready for an election until 2009. If this is the case, it passes.