NOVA.SCOTIA (CBC) - Nova Scotia's third-party Liberals will support the provincial budget, ensuring the minority Progressive Conservative government remains in power.

Liberal Leader Stephen McNeil made the announcement Friday at Province House, saying the budget was "balanced enough."

"It would be hypocritical of us to walk out now and say, after we've been pounding on the table for a Keep the Heat program, to defeat this government," he said.

The Tories included a modified version of the home fuel rebate program in their budget.

Just this week, the government gave in to a Liberal demand and announced it would pay for 10 extra seats at medical school for aspiring doctors.

Though the nine-member Liberal caucus will vote in favour of the budget next Thursday, McNeil insists the move is not an endorsement of the governing Tories.

"We will continue to watch them, provide an effective opposition, as we've been doing, as we go forward. They know that if they break faith with Nova Scotians we will hold them accountable," said McNeil, who has led the Liberals since April 2007.

Finance Minister Michael Baker says he is pleased his budget will pass.

"We believe the budget is supportable. It's a good budget, a good budget for Nova Scotians. And we're very pleased that Mr. McNeil saw it that way," Baker said.

But NDP Leader Darrell Dexter suggested the Liberals had something else in mind.

[SIDEBAR] Breakdown of the 52 seats in the legislature:

Progressive Conservatives - 22

New Democrats - 20

Liberals - 9

Independent - 1

[/SIDEBAR]

"This is a party that has a lot of rebuilding to do and I think they needed the time and political space to be able to try and do that," said Dexter.

The Liberals' decision, he added, "seems really based on what was in their interests than the broader question of what was really in the interests of the province."

Dexter suggested earlier this week that he wasn't happy with the job the Tories have done, but has not said how his party will vote.

As a minority government, the Tories need the support of either the Liberals or the NDP to pass the budget and stay in power. If not, the government falls, forcing an election.

The last provincial election was in June 2006.

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