Government Provides Special Warrants for Immediate Spending

The province is authorizing limited interim spending on government programs and services this year, pending formal approval of the provincial budget by members of the legislature.

Executive Council has approved special warrants for 27 budget appropriations that have spending requirements early in the fiscal year.

Under Section 27 of the provincial Finance Act, only up to 50 per cent of the previous year's budget for each category may be spent before the next budget is passed.

"We want to ensure programs continue to run smoothly, and funds are authorized and available to avoid interruption in programs, services, and projects," Finance Minister Michael Baker said today, June 23. "Authorizing special warrants, in case they are needed, is part of prudent management of the province's budget."

The spring budget was introduced on May 9, but was not passed before the provincial election was called. The newly elected government will introduce the budget again, shortly after the House opens in late June.

Without the special warrants, some budget areas could exceed their authorized level of expenditure before the 2006-07 budget is passed. However, the legislature may well approve the budget before spending limits are reached.

"The budget process could very likely be complete before the warrants are invoked," Mr. Baker said. "However, the authority will be there for those who need it."