Released on September 8, 2005
The Provincial Auditor's report released today confirms the Government of Saskatchewan is providing good fiscal management for the province.The 2005 Report – Volume 2, Understanding the Finances of Government – sets out financial and economic information to help Saskatchewan people understand government finances.
The Provincial Auditor noted the Government's financial condition significantly improved in 2005, mainly from one-time equalization revenue from the federal government as well as boosts in non-renewable resource revenue. However, the Provincial Auditor emphasized certain uncontrollable factors influence the government's yearly financial outcomes, such as low commodity prices, adverse weather and high interest rates.
"His report shows that 2005 was fiscally successful," Finance Minister Harry Van Mulligen said. "But the report tempers this good news with an important reminder - from an independent source's perspective - that Saskatchewan must remain mindful of balancing spending needs and priorities."
Other highlights in the Auditor's Report include:
· The Government of Saskatchewan is living within its means;
· The net debt as a percentage of the Gross Domestic Product (GDP) decreased from 25 per cent to 21 per cent;
· Government has made great strides in debt reduction. In 1993, 24 cents of every dollar went to pay for interest costs; in 2005, 10 cents of every dollar of government revenue pays for interest costs;
· Saskatchewan's own-source revenue excluding non-renewable resources as a percentage of GDP is third lowest in Canada.
· Saskatchewan has received several credit rating increases from agencies such as Moody's and Dominion Bond Rating Service (13 credit rating increases in 10 years, four under Premier Calvert's leadership).
"While there will always be factors beyond our control, BSE and drought for example, we will continue to prudently manage our revenues and expenditures," Van Mulligen said. "Fiscal responsibility and sound management are top of mind for this government, as we continue on our path of permanent debt reduction, tax relief, investments in public infrastructure and spending on key social priorities."
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For More Information, Contact:
| Mike Woods Finance Regina Phone: (306) 787-6578 |