Rational Is as Rational Does: While the Premier claims Nova Scotia’s budget process was “too rational,” the evidence suggests the real problem may be the opposite
When Nova Scotia’s Premier recently explained his reversal of several budget cuts, he suggested the problem may have been that the government’s budgeting process had been too rational and that what was needed instead was more compassion.
It was a striking claim.
Because when one looks at the evidence behind many of the government’s recent policy choices from bridge toll removal to tax cuts amid rising debt and cuts to cultural programs, the more pressing concern appears to be the opposite: that rational, evidence-informed policymaking has too often been missing from the process.
Good public policy is not made by throwing ideas at the wall to see what sticks. It requires evidence, transparency, and a clear understanding of what actually strengthens communities and economies.
Public policy is not a kitchen experiment where you throw ideas at the wall and see what sticks.
At its core, responsible budgeting should meet three basic tests: it should be transparent, evidence-informed, and focused on long-term public benefit. It is not guesswork. As I wrote recently in my article The Difference Between Cooking Spaghetti and Making Public Policy, good policy draws on research and experience. It considers what we already know about what contributes to healthy, resilient, and prosperous communities.
Governments do not make decisions in a vacuum. Economic development, tax relief, infrastructure investment, and resource development can all play legitimate roles in a provincial economic strategy. Nova Scotians reasonably want growth, opportunity, and fiscal stability. But they also want a government committed to the long-term well-being of all Nova Scotians.
The question is not whether those goals matter, but whether the specific policies being pursued are grounded in evidence and likely to achieve the results being promised.
Consider a few recent examples.
During the last election campaign, the government promised to remove the tolls from the Halifax–Dartmouth bridges on the grounds that doing so would ease traffic congestion. Yet transportation planners and economists have long understood that removing road pricing mechanisms typically has the opposite effect: when driving becomes cheaper, more people choose to drive, and traffic volumes increase rather than decrease. And yet, this move, cost the Provincial Government approximately $40 million in toll revenues.
That is not rational policy.
The government also promised a one-percentage-point reduction in the HST, described as the largest tax cut in Nova Scotia’s history. At the same time, the province is projecting historically large deficits and a rapidly growing public debt. Provincial net debt is currently projected to reach $27.9 billion by the end of the 2026–27 fiscal year, rising to $35.9 billion by 2029–30, not including borrowing undertaken outside the provincial budget.
That is not rational fiscal management.
Compounding this concern is the amount of spending occurring outside the traditional budget process through borrowing by provincial corporations. This borrowing has added billions of dollars in additional liabilities to the province’s overall debt, raising legitimate questions about transparency and long-term fiscal sustainability. Yet the Premier has indicated he will not hesitate to continue using this practice if he believes it necessary.
That is not rational financial stewardship.
The government is also placing significant emphasis on large energy projects and expanded mineral exploration as engines of future economic growth. Resource development can play a role in the economy, but research consistently shows that long-term prosperity depends far more on broad-based investments—in housing, education, health care, and community infrastructure—than on resource extraction alone.
The Canadian Centre for Policy Alternatives makes this point clearly in its recent review of the provincial budget:
“Resource development can play a role in the economy, but it cannot substitute for the broad-based growth that comes from investing in housing, care, education, and community infrastructure. Jurisdictions that rely heavily on resource extraction often experience greater volatility and less inclusive growth.
The goal should be to make the economy work better for the people who live here, not to chase the next company seeking to extract resources for distant shareholders—often creating few sustainable jobs, high cleanup costs, and limited long-term local benefits.
Nova Scotia’s own environmental conditions also warrant caution. Given the province’s geology, heavy rainfall, and relatively dense population, research has long warned that mineral development carries environmental and public-health risks that require careful oversight.”
Ignoring those realities would not be rational policy either.
At the same time, the government initially proposed significant cuts to arts, culture, and heritage programs—despite substantial evidence that the cultural sector contributes to economic activity, employment, tourism, and community well-being across the province. From major institutions like Neptune Theatre, Symphony Nova Scotia, and the Art Gallery of Nova Scotia to hundreds of community festivals and cultural organizations, the sector supports both economic activity and community life.
Weakening one of the sectors that strengthens communities and local economies and is an economic driver is not rational economic policy.
Questions also remain about the province’s long-term care expansion strategy. Auditor General reports have raised concerns about the limited use of competitive bidding and about whether the province’s $8.6-billion, 25-year commitment to service providers represents the best value for public funds.
Those are questions a rational policy process would address clearly and transparently.
The Premier is right about one thing: compassion matters. Governments must care about the people their decisions affect.
But compassion alone is not a substitute for sound policy.
Effective government requires both compassion and rational, evidence-informed decision-making.
And no amount of hand-on-heart reassurance can substitute for policies grounded in evidence, transparency, sound judgment, and a clear commitment to the long-term well-being of all Nova Scotians.
Because in public policy, as in life, rational is as rational does.
