Released on July 13, 2005
Volume 1 of the 2004–05 Public Accounts was released today showing the Province of Saskatchewan experienced a positive year after a boost in resource revenue and federal transfers, resulting in a $382.6 million surplus in the General Revenue Fund (GRF).The Public Accounts Volume 1 provides the audited year-end financial statements for the Government of Saskatchewan.
"The 2004-05 fiscal year offered good news and positive financial outcomes for Saskatchewan," Finance Minister Harry Van Mulligen said. "This in-year financial improvement allowed us to develop and deliver a plan that provides for debt reduction, tax relief, the necessary investments to maintain our public infrastructure and address our emerging social and economic priorities while continuing to improve our overall fiscal situation."
The Province saw a $1.2 billion rise in GRF revenue from the 2004-05 budget estimate, mainly from higher than expected one-time-only equalization and other transfers from the federal government. Non-renewable resource revenue from oil, potash and natural gas sources also contributed significantly to this increase.
Total 2004-05 GRF operating spending was up by $300.3 million over budget to respond to spending priorities in Agriculture (2003 CAIS program, BSE compensation), Learning and Health. Decreased spending was noted in other areas, such as the Department of Environment for reduced fire fighting costs.
As announced at Mid-Year, $179.3 million of the GRF surplus was allocated toward permanent debt reduction to ensure good fiscal health for future generations. Government debt is now at its lowest level in 14 years.
$110 million of the GRF surplus was directed toward key public infrastructure investments. These projects include rebuilding the 1913 section of the Regina jail, construction of a new provincial lab building and beginning forest fire fighting fleet renewal. The remaining $93.3 million in additional GRF surplus will also be directed toward renewing the aging fire fighting fleet.
The surplus comes even after a $382.5 million transfer into the Fiscal Stabilization Fund, which will fund the multi-year commitments announced at Mid-Year including property tax relief and third party capital (improvements for municipal infrastructure, the veterinary college and the College of Medicine).
The Summary Financial Statements recorded an $844 million surplus. The Summary Financial Statements provide an accounting for the full extent of financial activities of the government, including the GRF, the Crown Corporations and Treasury Board organizations.
2004-05 was the first year ever that the government released a summary financial plan, so these public accounts are also the first time budget to actual comparisons on a Summary Financial Statement basis have been possible.
Saskatchewan also received its 11th credit rating upgrade last year, and its 12th in April. Saskatchewan's credit is rated in the AA category by both Standard & Poor's and Moody's for the first time since 1985-86.
"There is no doubt the extra revenues identified at the Mid-Year mark will benefit the province, but it is also important for us to maintain a sound financial path," Van Mulligen said. "The strong results in 2004-05 allowed the government to make commitments that help to meet the needs of this province and we are committed to staying on course with our plan."
More information on the 2004-05 Public Accounts can be found at www.gov.sk.ca/finance/news.
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For More Information, Contact:
| Vanessa Gooliaff Beaupre Finance Regina Phone: (306) 787-8109 |