The Push for Accountability in Government Spending: Nova Scotia’s Audit Report

Introduction: The Call for Transparency

Nova Scotia’s Auditor General, Kim Adair, has once again sounded the alarm on a critical issue that has been growing in urgency over the past decade. In her latest report, released in February 2025, she highlights a troubling trend: government spending that bypasses the traditional legislative approval process. This practice, often referred to as "additional appropriations," has reached alarming levels, with a staggering $7 billion spent over the past ten years without proper authorization from the legislature. Adair’s report emphasizes the need for greater accountability and oversight, urging the government to adopt measures that ensure transparency and adherence to budgetary processes. This issue is not just about numbers; it’s about ensuring that public funds are used responsibly and in the best interests of the people.

TheNumbers Behind the Problem: A Decade of Extra-Budget Spending

The figures presented in Adair’s report are nothing short of eye-opening. In the 2023-24 fiscal year alone, the Nova Scotia government spent $1.38 billion that was not authorized by the legislature. This amount represents a significant portion of the government’s total expenditures for that year, making up 8.2% of all spending. To put this into perspective, just a decade ago, in the 2014-15 fiscal year, such extra-budget spending accounted for only 1.3% of total expenditures. This dramatic increase over the years signals a growing reliance on mechanisms that allow the government to spend public funds without the necessary checks and balances.

Adair’s report also reveals that in four out of the past five fiscal years, government revenues exceeded budget forecasts. While surplus revenues might seem like a positive development, they have also provided the governing party with an opportunity to allocate funds without legislative approval. This practice raises concerns about the transparency and accountability of government spending, as it effectively allows the executive branch to bypass the democratic process.

The Trend: A Growing Reliance on Unapproved Spending

One of the most concerning aspects of Adair’s findings is the steady increase in extra-budget spending over the past decade. This trend suggests that the government has become increasingly comfortable operating outside the traditional budgetary framework, relying on additional appropriations to meet its financial needs. While such mechanisms may be necessary in exceptional circumstances, their repeated use over multiple years indicates a potential erosion of fiscal discipline and accountability.

The auditor general’s report underscores the importance of adhering to established budgetary processes. These processes are in place to ensure that public funds are spent in a manner that is both transparent and accountable to the people. When the government consistently exceeds its budget without proper authorization, it undermines the integrity of these processes and raises questions about the responsible use of taxpayer dollars.

The Impact on Budget Accountability: A Call for Reform

Adair’s report is not merely a critique of current practices; it is also a call to action. For the third consecutive year, she is recommending changes to the province’s Finance Act that would grant the legislature greater oversight authority. These changes would help ensure that all government spending is subject to proper scrutiny and approval, restoring the balance of power and accountability in the budgetary process.

However, the government has so far resisted these recommendations. This refusal to implement reforms has led to a growing divide between the executive and legislative branches, with the auditor general advocating for greater transparency and the government maintaining its current approach. The lack of progress on this issue is particularly troubling, as it leaves the door open for continued extra-budget spending and further erodes public trust in government institutions.

The Broader Debate: Balancing Flexibility and Accountability

The debate over extra-budget spending is not just about numbers and processes; it is also about the principles of good governance. On one hand, governments need a certain degree of flexibility to respond to unforeseen challenges and opportunities. On the other hand, this flexibility must be balanced with the need for accountability and transparency. When the government spends funds without proper authorization, it risks undermining the democratic process and alienating the public.

Adair’s report serves as a reminder of the importance of striking this balance. By advocating for reforms that would subject all government spending to legislative oversight, she is championing a system that is more transparent, more accountable, and more responsive to the needs of the people. While the government may argue that certain expenditures are necessary and urgent, the lack of a robust oversight mechanism leaves the door open to abuse and misuse of public funds.

Conclusion: The Path Forward for Nova Scotia’s Finances

In conclusion, Nova Scotia’s auditor general has once again highlighted a critical issue that demands immediate attention. The steady increase in extra-budget spending over the past decade is a clear indication that the current system is in need of reform. By recommending changes to the Finance Act and advocating for greater legislative oversight, Adair is taking a stand for accountability and transparency in government spending.

The path forward for Nova Scotia’s finances must be one of greater responsibility and accountability. This requires not only the willingness to implement reforms but also a commitment to upholding the principles of good governance. As Adair’s report so clearly demonstrates, the stakes are high, and the time to act is now. The people of Nova Scotia deserve nothing less than a government that is transparent, accountable, and committed to using public funds in the best possible way.