Higher Surplus For 2003-04

The Nova Scotia government is reporting a larger than anticipated surplus for the past fiscal year. Finance Minister Peter Christie told the Metropolitan Halifax Chamber of Commerce today, April 19, that the province is forecasting a $14.5-million surplus for 2003-04.

"Today I am pleased to tell Nova Scotians that we're solidly in the black, even though our budget suffered some blows last year," Mr. Christie said.

"A $14.5-million dollar surplus is a significant achievement in a year in which income taxes were lowered, investments in health care and education rose, plus we had floods, a hurricane and a blizzard to deal with."

The minister noted that the surplus goes directly against the debt.

When the 2003-04 budget was introduced last spring, the surplus was estimated at $2.8 million. By December, the government had revised its forecast to a $21.7-million deficit, mostly due to costs associated with natural disasters. The province also faced an unexpected loss of $143 million in federal transfer payments last year.

Mr. Christie said government departments were instructed to look for cost-savings and efficiencies last fall and that effort resulted in $32 million in savings.

Higher than estimated provincial income tax revenues and HST revenues helped offset the losses in federal funding. As well, adjusted provincial revenues, calculated on previous years' numbers, helped bring the surplus back into the black.

"It's been a year when more than ever we've had to manage the unexpected -- and manage well," said Mr. Christie. "Not only did we deliver a surplus, we invested more money in hospitals, roads and education."

The finance minister said he intends to introduce the 2004-05 budget to the House of Assembly before the end of April. It will mark the province's third consecutive balanced budget.