N※N

Nova Scotia Finance Dept. Exceeds Budget by $13.1 Million

  //business-finance.news-articles.net/content/202 .. finance-dept-exceeds-budget-by-13-1-million.html
  Published in Business and Finance on Wednesday, February 18th 2026 at 17:14 GMT by Global News
      Locale: Nova Scotia, CANADA

Halifax, NS - February 18th, 2026 - A newly released report has revealed that the Nova Scotia Department of Finance and Treasury Board exceeded its budget by $13.1 million during the 2023-24 fiscal year, sparking concerns about financial oversight and accountability within the provincial government. The findings, presented by Auditor General Kim Adair on Wednesday, have prompted calls for greater transparency and stricter controls over public spending.

The report, tabled in the legislature, details a $12.8-million increase in departmental expenses. The primary contributing factors were identified as escalating compensation costs ($7.8 million), a surge in spending on consulting services ($3.7 million), and investments in technology upgrades ($1.6 million). While the department offered explanations for each area of increased expenditure, the Auditor General's assessment pointed to a critical weakness: a lack of comprehensive documentation and robust internal controls.

"The increases themselves aren't necessarily the issue," explained Adair during a press conference. "Departments need to adapt to changing economic conditions and invest in necessary resources. However, we found insufficient evidence that these expenditures were appropriately authorized, meticulously tracked, or subject to effective monitoring. Essentially, the department knew where the money was going, but not always why, or if it was achieving the intended results."

The Auditor General's report does not allege any wrongdoing or fraud, but rather emphasizes systemic deficiencies in financial management. The lack of documented approvals, inadequate tracking of expenses, and the absence of early warning systems contributed to the overspending. The report includes several recommendations aimed at bolstering financial oversight, including the implementation of standardized approval processes, enhanced monitoring systems, and regular audits to ensure compliance.

Finance Minister Allan MacMaster acknowledged the findings and assured the public that the department is taking the concerns seriously. "We are committed to responsible financial management and we understand the importance of transparency and accountability," said MacMaster in a statement. "We are actively reviewing our internal processes and working closely with the Auditor General's office to address the identified issues and implement corrective measures." He indicated that a detailed action plan, outlining specific steps to improve financial controls, is expected to be released within the next quarter.

However, opposition leaders remain skeptical. Nova Scotia NDP Leader Claudia Chemnitz criticized the government's financial stewardship, arguing that the overspending reflects a broader pattern of fiscal mismanagement. "This isn't just about $13.1 million," Chemnitz stated. "It's about a lack of respect for taxpayers' money and a failure to prioritize responsible spending. Nova Scotians deserve a government that can manage their finances effectively." The NDP has called for a public inquiry into the department's spending practices.

The Progressive Conservative opposition echoed these concerns, demanding a more detailed explanation of the increased spending on consulting services. "$3.7 million on consultants is a significant sum," said PC Finance Critic John Carter. "We need to know what services were procured, who benefited from these contracts, and whether these services could have been provided internally at a lower cost." Carter questioned the rationale behind relying so heavily on external consultants, suggesting it may indicate a lack of internal expertise within the department.

The situation raises broader questions about budgetary processes across all government departments in Nova Scotia. While the Finance Department's overspending is the most recent instance of financial scrutiny, previous reports have identified similar issues in other areas of government. Experts suggest that a comprehensive review of financial management practices across all departments is necessary to ensure long-term fiscal sustainability.

The impact of the overspending remains to be seen. While the government insists it will not result in cuts to essential services, some fear it could necessitate adjustments to future budget allocations. The incident has undoubtedly heightened public awareness of government spending and increased pressure on elected officials to demonstrate responsible financial management. The coming months will be critical as the Department of Finance implements the recommended changes and strives to regain public trust.