April 26, 1996
(Finance)

Government advises of a change in budgetary shortfall forecast

Paul Dicks, Minister of Finance, has confirmed that the province's expected budgetary shortfall has changed by approximately $60 million since the projected $230 million deficit announced in late February. The government is now dealing with a projected shortfall for the 1996/1997 fiscal year of about $290 million.

The change in the estimates since the March 1 release of the pre- budget consultation document, Making Choices, results from a number of factors on both the revenue and expenditure side.

The 1996 Federal Budget, tabled in early March, provided new information on transfer payments to the provinces. As well, estimates of total employment in the province have been lowered meaning that we may now expect less tax revenue for the year than previously thought. The review of all departmental and agency expenditures during the budget preparation exercise also has resulted in somewhat higher forecast expenditure levels.

The minister advises that government is giving the deficit situation and the comments heard from the people of the province during the pre-budget consultation process considerable attention as it develops the 1996 Budget, which he expects will be brought down by mid- May.

Contact: Karen McCarthy, Director of Public Relations, (709) 729-0110.