The provincial government announcing a two percent increase to both the HST and corporate tax rate in its 2016 budget but will not impose highway tolls.
Provincial Finance Minister Roger Melanson says it was either raise the HST or make deep cuts to education and health care.
The province is cutting 1,300 jobs over the next five years and the number of school teachers in the province will be reduced by 50 through retirements.
The government estimates it will save $589-million through a combination of spending cuts and tax increases. It also predicts the provincial budget will be balanced by 2020-21.
A deficit of $347-million is projected for 2016-2017.
