Fixed Income Quarterly—Provincial Perspectives
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this budget reverses the aggressive tack on spending restraint last year, when public-sector employment was cut in an effort to prevent an even larger deficit. This year, spending is again on the rise, with a particular focus on education. The Province is also sticking to, and is in year two of, its 10-year sustain-
ability plan. As announced last year, years 1 and 2 focus on deficit elimination and a review of pension liabilities. Year 3 returns to surplus—a small $28.5 million surplus is expected in FY15/16. Years 4-10 focus on debt reduction and economic diversification.