Released on February 16, 2006
The Province's Third Quarter Report, which was released today, demonstrates further financial improvements from mid-year.Overall, provincial revenue is up $144.5 million from mid-year. The improvement in revenue is due to higher tax revenue which helped offset lower oil, gas and potash resource revenues. The Government also realized savings in some areas, relative to mid-year, including lower EnergyShare program costs due to lower natural gas prices and reduced consumption due to warmer winter weather.
"Given the diversity of the province's economy, we expect some rebalancing of revenue sources during the year," Finance Minister Andrew Thomson said. "These financial improvements provide us with the ability to share new money with municipalities, to accelerate funding for capital projects and further pay down the debt."
Some new provincial government initiatives include:
* $44.7 million in debt reduction;
* $42 million in support for municipalities through previously announced support to increase the CommunityShare 2006 program and top-ups to the municipal revenue sharing program for 2005;
* $42.6 million in new health capital;
* $14 million for Kindergarten to Grade 12 capital;
* $4.2 million for the Saskatchewan Research Council, primarily for capital equipment upgrades and additions to better support industry demands across numerous sectors including agriculture and biotechnology, energy, alternative energy, manufacturing and the environment;
* $7 million to begin the process to renew provincial court houses; and
* $20 million has been set aside for inflationary increases on government-owned capital projects.
"Paying down the debt is a priority of this government," Thomson said. "With a further $120.8 million debt repayment this year, we will have reduced the province's debt by $300 million during the past two years alone. This is a significant reduction and shows our continued commitment to fiscal responsibility.
"As we work on the 2006-07 Provincial Budget, we will continue to carefully balance the needs and priorities of Saskatchewan people to ensure they see real benefits from the improved financial situation of the province, and will ensure those benefits are responsible and sustainable," Thomson said.
Further details on initiatives will be released by departments over the next month.
Copies of the 3rd Quarter Report are available online at: http://www.gov.sk.ca/finance/QuarterReports/thirdquarter.htm.
-30-
For More Information, Contact:
| Lorri Thacyk Finance Regina Phone: (306) 787-6605 |