Release of Financial Report 1997-98

Nova Scotia's auditors have confirmed that fiscal 1997-98 ended with a budget surplus of $38.5 million, says Finance Minister Don Downe.

The final numbers were released today in the province's annual financial report for 1997-98. The surplus is $1.1 million more than forecast in the budget brought down last June.

The report shows that spending on health care for Nova Scotians reached a record $1.427 billion last year. The spending increases were more than matched by increases in tax revenues and transfers from the federal government.

Last month, the government announced it would distribute about $10 million from the surplus to consumers in the form of an HST rebate on electricity. The remainder of the surplus, $28.5 million, will be used to pay down the province's debt.

"This is our second back-to-back budgetary surplus," said Mr. Downe. "I am pleased to be able to show Nova Scotians that we are on the right track and are reducing the obligations of the taxpayers rather than increasing them."

As a result of the budget surplus and the improved financial position of the government's pension plans, the direct obligations of the taxpayers have been reduced by $219 million. At the end of fiscal 1996-97, the net direct debt of the province stood at $8.588 billion. As of March 31, 1998, the net direct debt was $8.369 billion.

"A balanced-budget track record improves our reputation in the business and investment community," said Mr. Downe. "It is also a strong signal to our citizens that the days of deficit financing have ended. I believe very strongly that for the sake of our children, we must continue to live within our means."