The Nova Scotia government has promised to balance its books, and its budget unveils how this remarkable feat is supposed to happen: by pinching pennies.

According to Finance Minister Diana Whalen, there’s no gain without pain when it comes to eliminating the province’s $98-million deficit. Among the steps the government announced in its $10-billion budget is cutting 320 positions. More than 100 of those came out of the Economic and Rural Development and Tourism Department, which no longer exists.

The department, designed to attract and support businesses, wasn’t doing its job, Whalen says: “We weren’t getting a stronger economy; we weren’t moving out of last place.”

Rising from the department’s ashes is the Business Department, which, the government says, will create “one of the most competitive and business-friendly environments in Canada.” It’s not clear exactly how that will be done, but the days of giving grants to companies to set up shop or expand operations appears to be over. Instead, we’re told, the “small, efficient and responsive” new department will foster entrepreneurship and innovation, speed up regulation and develop a private-sector growth plan.

Interestingly, the demise of economic development as a department (or, at least, part of one) has met with little opposition. One of two issues that did capture the ire of critics is the government’s intention to slash its film tax credit. (The other contentious issue is giving universities the green light to make “market adjustments” to their tuition fees. It’s not anticipated that fees will be lowered.)

The Nova Scotia government is cutting the film tax credit to $6 million from $24 million. Although, on the surface, that seems to be small change in a multibillion-dollar budget, this cut is enough to decimate the sector, according to industry insiders. Already, big players in the film and television industry here have announced they will pull up stakes and move to where the money flows more freely. David Regan, an executive vice president with DHX Media Ltd., has publicly stated that his company, which produces the TV comedy This Hour Has 22 Minutes for CBC, will be uprooted.

The government – for now, at least – is holding firm on its decision. At the heart of the uproar is a disagreement over numbers. The province contends the value of production associated with the tax credit, which provides up to 65% off labour costs, amounted to just $66.8 million in 2013-14 and that the rate of return on the credit is less than 25¢ in taxes. It’s simply not worth it, Premier Stephen McNeil publicly stated: “I understand why people affected by the change are not happy, [but] we don’t have the capacity to write a blank cheque.”

Screen Nova Scotia, an industry group promoting the local film sector, says the cheque is not as blank as the government indicates. The group’s calculations add up to $139 million in spending generated by the tax credit and 2,700 jobs supported.

In the end, the cuts are about the bottom line. This is a government that has drilled down deep enough into a $10-billion budget to fuss about $24 million and take politically unfavourable steps to bring its finances under control.

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