Released on September 4, 1997
Finance Minister Eric Cline today released Volume I of the 1996-97Public Accounts, confirming the Government's third consecutive
balanced budget. In his comments following the release, Cline pointed
to the combined benefits of sound fiscal management and last year's
stronger than anticipated economy.
"The tremendous growth of the Saskatchewan economy last year,
particularly in our resource industries, has provided a real boost to
our financial position, allowing us the capacity to reduce debt and
respond to the needs of our residents. Our plans are on track and
Saskatchewan people should feel optimistic about the future of our
province."
Cline cautioned, however, that this was a unique year. "The special
dividend we received from the sale of Cameco shares, combined with the
exceptional strength of our resources, provided greater flexibility
than we have seen in some time - and, perhaps, than we are likely to
see in the future."
Volume I of the 1996-97 Public Accounts contains the General Revenue
Fund (GRF) and Summary Financial Statements (SFS), which are the
Government of Saskatchewan's main financial statements. Volume I
provides a full accounting of the financial affairs and resources of
the General Revenue Fund, Crown Corporations and agencies, boards and
commissions.
Highlights from the General Revenue Fund financial statements
include:
Overall revenues were up $158 million (3 per cent) over the
budget estimate, largely due to a stronger than anticipated
economy.
Total expenditures were down $17 million from the previous
year.
The year closed with a positive GRF budget balance of $407
million, up 13.7 per cent over the budget estimate of $358
million. A special dividend from Crown Investments
Corporation (CIC) of $365 million for the sale of its
shares in Cameco offset increased investments in priority
areas and contributed to the GRF surplus.
Total Government Debt was down $1.3 billion (from $14.2
billion in 1996 to $12.9 billion in 1997).
Highlights of the Summary Financial Statements include:
The strong economy and careful financial management was
reflected in all sectors of government.
CIC consolidated net earnings were up $69.2 million from the
previous year (excluding non-recurring items from both
years, such as the sale of Cameco shares).
Improved earnings in the Crown sector contributed to a
positive SFS balance of $557 million, bringing the Summary
accumulated deficit down to $9.3 billion.
"The benefits of sound financial management and a strong economy
are evident in this report," Cline said. "Last year, we were
able to make an additional investment in health and a one-time
paydown of the Crop Reinsurance Program deficit - on top of
replacing every dollar cut from health, education and welfare
spending at the federal level.
"In this year's budget, the benefits are equally apparent, with
greater investments in health and education, better services for
families, a long-term financial commitment to highways and the
lowering of the provincial sales tax from 9 per cent to 7 per
cent."
Cline also noted that, because of the positive economic climate
and consequent increase in revenues, the province did not take
its budgeted dividend from the Saskatchewan Liquor and Gaming
Authority in 1996-97. "We feel it is prudent to build up our
reserves in good times as security against future events such as
an economic downturn or natural disaster. Given our high debt
load, we must continue to be careful managers of all aspects of
public finance."
This is the sixth year in a row that the government has set a
record for early release of the audited financial statements.
"It's important to release this information as early as possible
so Saskatchewan people can see that our financial plans are on
track," Cline said.
Volume II of Public Accounts, which provides detailed information
on specific transactions within the General Revenue Fund, is
currently being prepared and will be released prior to the
October 31, legislative deadline.
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For more information, contact:
Sandra Lodoen
Director of Communications
Saskatchewan Finance
Regina
Phone: (306)787-6578