Released on June 29, 2006
Saskatchewan's economy continued to perform well last year creating a $1.2 billion spike in revenue over the 2005-06 Budget estimate, according to the 2005-06 Public Accounts, Volume 1 released today.Main contributors to the economic boost were higher than anticipated non-renewable resource revenue and taxation revenues at $529 million and $421 million respectively.
"Stronger than anticipated revenue is a great indicator of a healthy and robust economy experiencing a lot of positive activity," Finance Minister Andrew Thomson said. "This improvement allowed us to address priorities and improve the lives of Saskatchewan people."
Expenses
The 2005-06 General Revenue Fund (GRF) operating spending increased by $539 million over budget, with 90 per cent of the increase directed toward the following five key priority areas:
• $157 million (29 per cent) in additional support for farmers;
• $117 million went to Learning (22 per cent), mainly for school capital projects benefiting primary, high school and post-secondary students across the province;
• $98 million (18 per cent) in further funding for the healthcare system;
• $75 million (14 per cent) in funding for consumer protection from high energy costs through the Saskatchewan EnergyShare plan; and
• $37 million (7 per cent) to support infrastructure and program improvements in municipalities.
General Revenue Fund Surplus
A higher revenue intake also led to a $400.5 million General Revenue Fund surplus. Over two-thirds or $267.4 million of the GRF surplus was allocated to permanent debt reduction, bringing the total allocation to just under $447 million in the past two fiscal years.
"Our government has made it a priority to pay back debt permanently and we have made great strides in this area," Thomson said. "I'm pleased that government debt is now at its lowest level in 15 years."
The remaining one-third or $133.1 million of the GRF surplus will be used to finance commitments for capital projects such as the northern roads strategy, Saskatchewan Hospital North Battleford, improving provincial courts and inflation costs for construction projects already underway in the province.
Fiscal Stabilization Fund
The Fiscal Stabilization Fund (FSF) transfer improved by $313.5 million from the 2005-06 Budget, bringing the balance to $887.5 million. The majority of these funds have already been committed to various projects, such as third party capital and property tax relief. The remaining FSF balance is a cushion against unforeseen pressures, such as costs associated with an active forest firefighting season.
"The 2005-06 Public Accounts demonstrate Saskatchewan is in good financial shape," Thomson said. "Our government continues to provide good leadership and make responsible choices that benefit Saskatchewan people through permanent debt reduction and sound investments in our infrastructure and programs. We want to ensure Saskatchewan remains the best place in Canada to live, work and raise a family."
More information on the 2005-06 Public Accounts can be found at www.gov.sk.ca/finance.
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For More Information, Contact:
| Vanessa Gooliaff Beaupre Finance Regina Phone: (306) 787-8109 Email: vgooliaff@finance.gov.sk.ca |