Province Forecasting Higher Surplus for 2005-06

The province is forecasting a surplus of $151 million for the fiscal year that ended March 31, 2006, well above the amount budgeted last year, Finance Minister Michael Baker said today, May 1.

In a speech to the Bridgewater and Area Chamber of Commerce, Mr. Baker said that rising offshore gas royalties and other revenues contributed to a surplus that is $87.7 million higher than budgeted last spring.

All $151 million from the surplus will be applied to the province's debt.

"We are ending the year with a healthy bottom line that will give a boost to our debt reduction plans," he said. "At the same time, we have been able to do some additional spending to address some priority areas."

Net program spending is forecast to increase by $92.1 million, about $22 million higher than anticipated in the December forecast.

Government made additional investments through the year in health care and health promotion, assistance to universities, energy rebates and conservation, community recreational development grants, and economic development initiatives.

Revenues were up, largely due to provincial sources. Offshore royalties increased to $143.8 million, $113 million more than budgeted and $24.8 million more than forecast in December.

Final results of 2005-06 will be available in the province's financial statements, the Public Accounts, in September. More details of the 2005-06 forecast will be presented with the 2006-07 budget, which is expected to be released later this month.