2011-12 Public Accounts Show Province's Finances Improving

Nova Scotia is on the right path to becoming a stronger province as its finances continue to improve year after year.

The province released its public accounts for 2011-12 today, Aug. 2, ending the year with a deficit of $248.5 million. This is an improvement of $141.1 million from the budget estimate.

"Nova Scotia families and businesses will reap the benefits as the province's finances become increasingly more stable and sustainable," said Finance Minister Maureen MacDonald. "Our four-year plan is on track and it's working. This government is helping to build a strong economy through careful management of the province's finances and sound investments.

"Credit-rating agencies are recognizing our progress and national and international companies are bringing good jobs by expanding their operations here."

Total revenues in 2011-12 were $9.7 billion, an increase of $137.8 million over estimate. Revenues were $245.8 million lower than the previous year, primarily because of lower corporate income tax revenues, petroleum royalties and recoveries, and decreases in other federal sources.

Total expenses in 2011-12 were $9.9 billion, a decrease of $3.2 million from estimate. Expenses were $588.1 million more than the previous year, because $293.7 million in assistance to universities was reinstated and funding to Health and Wellness, Education, and Community Services increased.

2011-12 marked the third year in a row that departmental spending came in under budget.

"All Nova Scotians have shared in the challenge of getting the province back to balance, and that discipline is paying off," added Ms. MacDonald. "This government crafted a plan to fix the financial situation it inherited, and we are sticking to that plan."

Additional appropriations, approval to cover unbudgeted expenses, continue to trend lower than past years. In 2011-12, they were $49.6 million, $13.9 million lower than last year, and significantly less than the annual average of $276.9 million between 1999 and 2009.

In April 2011, it was estimated that the province's net debt at the end of 2011-12 would be $13.7 billion. Nova Scotia's net debt was $13.2 billion at March 31, 2012, an improvement of $500 million from the April 2011 estimate and an increase of $485.2 million over the previous year. This year-over-year increase is due to the $248.5 million deficit and $245.3 million net investment in tangible capital assets, offset by a net decrease of $8.6 million in other non-financial assets.

The province's net debt to gross domestic product ratio, a key indicator of economic health, decreased 0.1 per cent from 35.1 per cent in 2011 to 35 per cent in 2012.

The consolidated financial statements for the fiscal year ended March 31, 2012 are prepared in accordance with generally accepted accounting principles for the public sector. Nova Scotia's auditor general has provided an unqualified auditor's report, included in Public Accounts Volume 1.

The other documents released today include Volume 2 - Agencies and Funds, and Volume 3 - Supplementary Information.

The public accounts documents are available online at www.novascotia.ca/finance/en/home/publications/publicaccounts.

Several large entities have fulfilled their 2011-12 requirements under the Public Sector Compensation Disclosure Act today.

The province introduced the act in 2010, requiring public sector organizations to disclose individual compensation of more than $100,000 in an audited statement posted to a publicly accessible website.

"This is about transparency in how tax dollars are spent across the public sector," said Ms. MacDonald. "I'm proud that we are one of the few provinces where citizens readily have access to this information."

A list of the organizations that fall under this legislation can be found at www.novascotia.ca/finance/en/home/publications/pscd/organizations .