A Nova Scotia policy group is criticizing the province’s December budget update, saying it raises serious concerns about government priorities during a cost-of-living crisis.
In the province’s update, they projected a $1.29 billion deficit, while also asking its departments to submit reports on possible cuts of up to 10 per cent of grants and programs.
The Canadian Centre for Policy Alternatives says the government’s decision to move ahead with tax cuts has reduced provincial revenues by about $500 million, money it argues could have been used to address housing affordability, rising rents, and homelessness.
CCPA-NS Director Christine Saulnier says the revenue loss creates a risk that the growing deficit will be used to justify austerity measures in the upcoming budget, at a time when many Nova Scotians are struggling to meet their basic living costs.
The group says the budget update highlights a disconnect between government spending decisions and the scale of the housing crisis.
Saulnier argues the province has failed to build enough affordable housing over the past five years and has relied too heavily on measures that support private developers rather than expanding non-market housing.
According to CCPA-NS, ending the housing crisis would require building roughly 4,000 permanently affordable units each year for the next decade.
Saulnier says most current funding goes toward rent supplements or below-market rents, which do not create long-term affordable housing where residents spend no more than 30 percent of their income on shelter.
The organization is also calling for greater transparency around the province’s tax cuts, including a public breakdown showing how the benefits are distributed across income levels.
CCPA-NS has submitted recommendations as part of the provincial budget process, urging increased investment in housing and cost-of-living supports, as well as consideration of new public or crown corporations in areas such as transportation, insurance, energy, and cooperatives.
The group says it will release its 2026 Alternative Budget in January, outlining those proposals in more detail.
