N.S. auditor general calls for accountability on $1.38B over-budget spending

Nova Scotia Auditor General Kim Adair calls for more public accountability after the 2024 Financial Report shows $1.38 billion in over-budget financing. (CTV Atlantic/Jesse Thomas)

For the third year in a row, Nova Scotia Auditor General Kim Adair is calling for more accountability over government spending, after her latest financial report found $1.38 billion in over-budget spending was not approved in the legislature.

Adair is calling for changes to ensure taxpayers and legislators know exactly where public funds are going. She wants changes made to the Finance Act, which would require all spending over and outside the provincial budget to first be reviewed and voted on by MLAs in the legislature.

“We’ve looked at the Finance Acts across the country and Nova Scotia is unique; it’s the only one that doesn’t require going to the legislature for approval for spending beyond the original budget,” said Adair during a news conference with media on Tuesday.

Adair’s latest fiscal report reveals that outside of the more-than-$16 billion in government spending, an additional $1.3 billion in 2023-24 alone went without a majority vote of those elected to the legislature.

“Total revenue has exceeded the budgeted amount for four of the past five years and the province has used the increased revenue to advance additional spending,” said Adair in her 2024 Financial Report.

The auditor general has repeatedly called for changes to the province’s Finance Act to better align with best practices employed by other provincial governments where legislatures are required to review, vote on and approve any additional spending.

However, Adair says the government has not acted after three years of calling for these changes.

Her report also raises concerns over the number of government contracts being awarded that didn’t through a competitive bidding process, raising questions around the fairness and value government is getting with taxpayer dollars.

“When you look at the rationale for which you can do alternative procurement or untendered contract, I don’t know that they are meeting that rationale each and every time,” said NDP MLA Lisa Lachance.

Liberal MLA and former premier Ian Rankin said they’ll table legislation the auditor general is looking for when the legislature resumes later this week.

“If you are not tendering contracts and you are just choosing one company, that leaves questions open for relationships that the company might have with the government or if we are getting the right value for that money,” said Rankin.

Adair said the legislation around tenders sets clear guidelines.

“On occasion, for the right reasons, in an emergency, for example, or exceptional circumstances, it makes sense to sole-source,” said Adair. “However, the intent behind the procurement policy and the legislation is to have transparency, competition and fairness.”

According to the report, the Progressive Conservative government continues to turn operating surpluses each year, but Adair is concerned that net debt continues to grow, reaching $18.5 billion last year.

“The Province continues to manage our finances closely, following the Finance Act to ensure accountability and transparency,” said Nova Scotia Finance Minister John Lohr in a statement to CTV News.

“We follow the same process that every government has followed since 2010. We share additional appropriations openly with media and the public four times through the year, so Nova Scotians know how government is spending their taxpayer dollars.”

Lohr said the PC government has been spending money on housing and health care because that’s “what matters to Nova Scotians most,” stating the province has a “strong mandate” from residents to continue spending in those areas.

“We are continuing to look for opportunities to enhance communication regarding the nature of and need for additional appropriations,” he said.

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