Nova Scotia is facing a $481 million deficit for the upcoming fiscal year end. Finance Minister Diana Whalen confirmed the shortfall during a fiscal update - the first since the Liberals took office back in October. The largest contributor to the deficit is a drop in income tax revenues of $71 million and a one-time pension adjustment of $300 million to account for the unfunded liability in the public service pension. Whalen says the government is also calling on all departments to reduce spending by 1 percent - excluding health and education. Meanwhile, Whalen says Nova Scotians will not be getting their cut to the HST this spring. She says the province simply can't afford it now. She estimates the annual revenue for the province will be $9.3 billion. That's $158 million less than the target in the budget.
