The Canadian Taxpayers Federation says it’s time for Nova Scotia to rein in spending.

Recently, S&P Global downgraded the province’s credit rating, citing the province’s failure to meet previous budget targets.

The federation’s Atlantic director Devin Drover says it should be a major concern for taxpayers.

“Especially as we go into the soon to be released provincial budget. As credit ratings go down, the price of government debt goes up. It’s not an abstract issue, it will translate into costs on ordinary Nova Scotians,” said Drover.

Drover says the province is living on borrowed money, and Premier Tim Houston needs to stop the spending spree.

The federation is calling on the province to launch a review, and identify and cut waste.

“The first thousands dollars or so that you’re paying in taxes, it’s not going toward hospitals, classrooms or roads, it’s going to bond holders because Nova Scotia is spending more every year than it takes in.”

In December, Nova Scotia forecasted a deficit of $1.29 billion for the 2025-26 fiscal year.

That’s up $64.6 million from September’s forecast and nearly $592 million higher than the original budget.

Finance and Treasury Board Minister John Lohr said the shortfall reflects deliberate choices to invest in healthcare and affordability measures while cutting taxes.

“Our deficit comes from investing in healthcare and cutting taxes to make life more affordable,” Lohr said.