Released on July 21, 2003
Saskatchewan recorded its ninth consecutive balanced budget in 2002-03 with a surplus of $860,000 in the General Revenue Fund (GRF).The figures are contained in Volume 1 of the 2002-03 Public Accounts, released today by Finance Minister Jim Melenchuk.
The revenue picture was bright for 2002-03, with total revenues coming in at $6.46 billion, a 5.9 per cent increase over budget. The increase was largely a result of higher than anticipated oil and natural gas revenue (up $545 million) due to price increases, and higher personal income tax revenue (up $264.3 million) due primarily to a stronger tax base than originally forecast, offset by a dramatic $539.9 million decrease in equalization as a result of strong own-source revenue growth and an adjustment by the federal government to the mining tax base.
"Not only did we record a surplus last fiscal year – our increased revenue, combined with how well we managed the public purse, allowed us to put $82 million in the Fiscal Stabilization Fund for future use," Melenchuk said. "In other words, had we not put that money in the Fiscal Stabilization Fund, our surplus would have been $82.9 million."
Volume 1 also confirms that in spite of challenging economic conditions the government managed its spending, while funding key priorities of Saskatchewan people – such as health, education and agriculture.
Government recorded less than a one per cent increase in operating spending for 2002-03, compared to the previous year.
"GRF spending was up only 0.7 per cent over the previous year," Melenchuk said. "We are managing our spending as the increase in spending was primarily drought-related, in terms of increased forest fire management costs, and assistance for agricultural producers.
"Unfortunately, the drought was also the primary factor in the $654 million deficit in the Summary Financial Statements," Melenchuk said.
Of that total, $407 million – or 62 per cent – was drought-related. That includes a $200 million loss in the Crop Reinsurance Fund, a $173 million loss for the Crop Insurance Corporation, and $34 million from the Forest Fire Contingency Fund.
The Summary Financial Statements received a clean audit opinion for the 10th year in a row from the Provincial Auditor, indicating that the statements are accurate and reliable.
"On the debt side, I am pleased to say that debt continues to be at a manageable level, while at the same time we are lowering taxes and targeting spending on priority areas," Melenchuk said. "Saskatchewan's total debt to GDP ratio is at 34 per cent for 2003, down from 69 per cent in 1993, which was one of the highest ratios in the country at the time.
"Our 10 credit rating upgrades since 1995 – the most recent one received shortly after we tabled the 2002-03 Budget – demonstrate that we are on a sound financial track," Melenchuk said.
More information on the 2002-03 Public Accounts can be found at www.gov.sk.ca/finance/news.
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For More Information, Contact:
| Mike Woods Finance Regina Phone: (306)787-6578 Email: mwoods@finance.gov.sk.ca Cell: (306)539-9588 |