07:10 AM EST, 02/19/2025 (MT Newswires) -- Nova Scotia is ending the current 2024/25 fiscal year in a better fiscal position than previously anticipated, although reductions in HST and small business tax to support economic growth are expected to bring a deficit for the upcoming 2025/26, said CIBC.

Due to the uncertain economic landscape, the Canadian province is also including a C$200 million contingency in each year of the forecast horizon.

The C$897 million shortfall projected for fiscal 2025/26, which includes the contingency, would be just under 1.5% of the provincial gross domestic product, noted the bank.

With capital spending plans also rising, and despite an increase in short-term borrowing/drawdown of short-term assets, term borrowing is expected to rise to C $3.2 billion in the upcoming fiscal year, from C$2.5 billion in outgoing 2024/25, added CIBC.