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PROVINCE MAINTAINS STRONG FINANCIAL POSITION

Released on October 28, 1999

Finance Minister Eric Cline today released the 1998-99 Public Accounts,

confirming Saskatchewan's fifth consecutive balanced budget, further reduction

in the public debt, and increased investment in key program areas such as

health, agriculture and highways.



The Public Accounts show the province's financial position to March 31, 1999.



"I am pleased to report that we met the key objectives set out in the 1998-99

Budget," Cline said. "Taxes came down, there was continued debt reduction and

we were able to put increased resources into priority areas, particularly our

health system. In addition, $140 million was set aside to help our farmers.



"These Public Accounts confirm that Saskatchewan's financial position continues

to improve. Sound financial management pays tangible dividends in the form of

a growing economy. This in turn gives us the ability to lower taxes, pay down

debt and invest more in key program areas."



Highlights from the GRF financial statements include:



The fiscal year ended with a $28 million surplus;



Total debt was reduced $541 million from the previous year, further

improving Saskatchewan's debt to GDP ratio from almost 70 per cent in

1993 to 40 per cent at the end of the 1998-99 fiscal year;



Revenues were up due to solid economic growth in 1998 and a one-time

acceleration of income tax payments to the province by the federal

government; and



Spending increased primarily due to farm aid, the need for additional

funding to fight a record number of forest fires in 1998 and greater

investment in health, including funding for 200 additional nursing

positions.



Cline noted that, despite the increase in spending, Saskatchewan's per capita

operating expenditures were third-lowest in the country.



He also noted the continued endorsement of Saskatchewan's record of sound

financial management by independent financial agencies. "Earlier this year,

the Canadian Bond Rating Service upgraded Saskatchewan's credit rating from A

to A+. This was the fifth upgrade since 1996. It sends a clear signal to

investors across Canada and around the world that our province is making solid

progress on the economic and financial fronts."



The Summary Financial Statements received a clean audit from the Provincial

Auditor for the fifth consecutive year.



Volume I of the 1998-99 Public Accounts contains the General Revenue Fund (GRF)

and Summary Financial Statements (SFS) which are the Government of

Saskatchewan's main financial statements. The SFS provides a full accounting

of the financial affairs and resources of the GRF, crown corporations and

agencies, boards and commissions. Volume II of the Public Accounts contains

detailed information on departments' revenue and expenditures for the fiscal

year.



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For further information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306) 787-6578

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