Revenue Problem or Spending Problem?

In the context of Nova Scotia Bill 148, the bill passed by the McNeil government in an attempt to bring some rationality to public spending, Stephen Kimber, a local commentator who teaches journalism, has declared that the Nova Scotia Government has a revenue problem.

The crux of it is that the Nova Scotia government does not have enough money to pay for all that it currently spends.  Does it really matter whether the problem is caused by a shortage of revenue or by an excess of spending?

Spending more than you have is always problematic but the difference is meaningful because misdiagnosing the problem makes it difficult to provide a remedy for it.

To argue that there is a spending problem suggests that spending less can cure the problem, and in order to spend less one would have to curtail some expenses.  Conversely, the revenue-shortage diagnosis is shorthand for raising taxes and fees to Nova Scotians.

Kimber exclusively looks at the difference between budget projections and the last …