Released on November 6, 1997
Finance Minister Eric Cline today released the province's 1997-98Mid-Year Financial Report, which shows progress on the government's
commitment to invest in priority areas while meeting its budget
target.
The report shows that the government will meet its overall budget
target with a surplus of about $25 million. It also shows that, as
the result of continued strength in the provincial economy, the
government increased its investment in priority areas like highways,
health, and protective services for children and families. Cline
noted that the largest increases, compared to the budget forecast, are
a $10 million injection for highways and $25 million for health.
"Saskatchewan's economy has continued to outperform expectations,
providing some room to make these additional investments," Cline said.
"Resource production is strong, and sales have risen in oil, gas, coal
and potash; manufacturing shipments are up; and motor vehicle and
retail sales also continue to grow, in part as a result of the
two-point reduction in provincial sales tax."
Job numbers are also up significantly, with more people working
in 1997, on average, than at any time in the province's history.
"The month-to-month figures may vary somewhat, but the trend is
strongly upward."
Cline cautioned that, in spite of the growing economy,
Saskatchewan will not relax its vigilance with respect to careful
management of the province's finances. "Debt reduction continues
slightly ahead of schedule, and our debt servicing costs are
down," he said. "However, we still have work to do to get total
debt down to a level that will not unduly burden our children."
Moreover, Saskatchewan must maintain its flexibility to manage
reductions in federal transfer payments. This includes lower
levels of federal government support for health, education and
social services due to reductions in the Canada Health and Social
Transfer program, and lower Equalization payments.
"This year, Equalization will be about $93 million lower than
expected. This reflects our continued economic strength, but
leaves us with fewer dollars, overall, than we had budgeted."
The Mid-Year Report shows that the government will manage this
reduction by increasing its dividend from the Saskatchewan Liquor
and Gaming Authority reserves by an equivalent amount. "I
believe this situation clearly shows the wisdom of long-term
planning," Cline said. "We simply must build in flexibility to
respond to challenges like this if we are to establish and
maintain real financial independence."
"Over all, the Mid-Year Report shows that Saskatchewan is
fulfilling its budget commitments and improving the quality of
life for Saskatchewan people and communities. We're managing our
financial challenges, paying down debt and helping the economy
grow. Most important, we're investing, in a responsible and
responsive way, in people and in the future of our province,"
Cline said.
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For more information, contact:
Sandra Lodoen
Director of Communications
Finance
Phone: (306)787-6578