Province Releases 1998-99 Audited Financial Report

A deficit of $385.4 million was recorded last year according to the 1998-99 audited financial report, Finance Minister Neil LeBlanc said today.

"This cannot and will not continue," said Mr. LeBlanc. "This government is committed to doing what is necessary to get government back on a sound financial footing."

With the Nova Scotia economy performing well and projected to continue doing so, Mr. LeBlanc said now is the time for the provincial government to act.

"We can turn this around, but only if we act decisively, and we are committed to doing so," he said. "This is why we are reviewing virtually every program and service government offers. They must be in line with the priorities of Nova Scotians."

The minister said this is the first report to be compiled using generally accepted accounting principles; the previous government did not and was able to forecast a surplus of $1.2 million.

"From now on Nova Scotians will know the truth about their government's financial situation, warts and all," he said.

This new accounting process has been encouraged by the province's independent auditor general, and it makes Nova Scotia a leader in transparent financial reporting in Canada.

"It also makes us painfully aware of the true financial picture in government and of the tough decisions that lie ahead to correct that picture," said Mr. LeBlanc.

For the fiscal year ending March 31, 1999, the deficit was greater than the combined budgets of 10 government departments.

"For $385.4 million, we could have repaved 2,000 kilometres of road, and have enough left over to build eight new schools," Mr. LeBlanc said.

This deficit brings the total provincial debt to $9.928 billion.

"Ten billion dollars is not a number most people can relate to. To put it into perspective, a five-year-old child who started school this year will be paying off this debt when his or her own child starts school 30 years from now," the minister said. "That isn't right, and we have an obligation to live within our means."