Province Posts 2002-03 Surplus

Finance Minister Peter Christie said today, Nov. 13, the province recorded a surplus of $31.6 million for the fiscal year ending March 31, 2003. The minister tabled the province's financial statements today with the clerk of the House of Assembly.

"Getting the books into the black for the first time in decades is a significant achievement and one that should make all Nova Scotians proud," said Mr. Christie. "Discipline, hard work and good management practices brought us to this point. Nova Scotians supported the difficult choices that helped move us from a deficit to a surplus position."

The $31.6 million has been applied directly against the provincial debt, as required by legislation. Revenues from provincial sources were up significantly in 2002-03, increasing by more than $100 million. Federal revenues, however, decreased by $144 million, reducing total revenues by $42 million.

Departmental spending was 1.2 per cent ($55 million) higher than estimated. Debt-servicing costs decreased by $43 million, or about half of one per cent.

"When you look back on the year, our forecasts were conservative, but reasonably accurate," said the minister. "We managed our fiscal plan extremely well and it paid off with this surplus and payment to our debt."

Mr. Christie said the challenge now is in managing the serious challenges with the 2003-04 budget. "There is no question we are facing a difficult budget year," he said. "But our focus is firm in protecting patient care and public education. We will find savings in other areas of government and from the third-party entities we fund."

Nova Scotia completed a four-year program towards greater transparency and accountability in financial reporting by implementing accounting changes in compliance with generally accepted accounting principles (GAAP). The auditor general provided his unqualified audit opinion, confirming the province's financial statements are in order and in full compliance with GAAP.