Released on August 27, 1998
Finance Minister Eric Cline today released Volume I of the 1997-98Public Accounts, confirming the Government's fourth consecutive
balanced budget and a further reduction in Saskatchewan's public debt.
"The hard work of Saskatchewan continues to pay off with improvements
in the Province's financial position," Cline said. "More importantly,
people are seeing more of the benefits of that hard work, such as
better services, lower taxes and continued strength in the provincial
economy. I'm particularly pleased that repayment of Saskatchewan's
public debt is well ahead of schedule."
Volume I of the 1997-98 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:
The year closed with a positive GRF budget balance of
$35 million, up $11 million over the budget estimate of
$24 million.
Total government debt was down $813 million (from $12.86 billion
in 1997 to $12.05 billion in 1998), showing that the Government
is firmly on track with its plan to reduce debt.
Overall revenues were up $89 million (1.8 per cent) over the
budget estimate, largely due to strength in key economic
sectors.
Total expenditures were up $78 million (1.5 per cent),
reflecting greater investment in key services such as
health, highways and social services.
The Summary Financial Statements received a clean audit opinion.
Highlights include:
The strong economy and careful financial management was
reflected in all sectors of government.
Improved earnings in the Crown sector contributed to a
positive SFS balance of $368 million, bringing the Summary
accumulated deficit down to $9.0 billion.
The minister noted that one factor in Saskatchewan's sustained
economic growth was the reduction in the provincial sales tax
rate from 9 per cent to 7 per cent.
"Tax reduction is an important component of our balanced approach
to financial management," Cline said. "This balanced approach,
which also includes debt repayment and investing in people
through improved public services, works. We are committed to
doing even more as it becomes affordable."
Cline further noted that Saskatchewan's strong record of sound
financial management has been endorsed by a large number of
independent financial agencies. "For example, Moody's Investor
Services upgraded our credit rating in July. And, a recent
report from the Investment Dealers Association of Canada cited
the admirable government management of provincial finances' as
key to continued growth in our economy."
"It is important to remember, however, that growth is expected to
slow this year due to factors beyond our control, like
international commodity prices," Cline said. "Clearly, from a
budget perspective, this is not the time to throw caution to the
wind but rather to reaffirm the responsible, balanced approach
that has allowed us to respond to the present and future needs of
Saskatchewan people."
In keeping with its ongoing commitment to improved
accountability, this is the seventh year in a row that the
government has set a record for early release of the audited
financial statements. 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 Oct. 31, legislative deadline.
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For more information, contact:
Sandra Lodoen
Finance Communications
Regina
Phone: (306)787-6578