Province Issues Special Warrant

The province approved a special warrant for $1.13 billion today, July 2, to provide the authority to fund operating and capital needs until Oct. 31.

"This special warrant ensures the smooth continuation of government activity until a budget is approved this fall," said Graham Steele, Minister of Finance.

Without the special warrant, some departments could exceed the level of operating expenditure allowed by section 27 of the Provincial Finance Act.

The warrant covers commitments that are more than 50 per cent of the previous year's appropriation. This also includes unusual costs, such as election expenses.

"Special warrants provide the authority for spending," said Mr. Steele. "Government will continue to apply normal processes for the approval of individual projects and programs."

In addition, government is conducting a financial review to help determine the extent of outstanding spending commitments.

In May, a special warrant of $130 million was issued to cover capital spending until July 1. The special warrant issued today provides an additional $250 million for tangible capital assets in 2009-10, for a total spending authority of $551 million. This will allow projects to continue and authorize projects that can leverage federal dollars.

The warrant also provides spending authority of $881 million for appropriations covering operating expenses in a wide range of government programs and services.

Special warrants authorize government spending in the absence of an approved budget, or for needed expenditures that are not part of the budget.