Pre-budget consultations provide minister with many suggestions for budget

Finance Minister Joan Marie Aylward has concluded her pre-budget consultations. Approximately 150 people representing over 70 organizations participated in the consultations, which started in November 2001, and consisted of a combination of face-to-face meetings and video conferences.

During each of the sessions, Minister Aylward presented participants with the overview of the government revenue sources, key areas of spending and possible budgetary options. The minister looked to participants for suggestions on how government may more effectively spend its limited funds and increase revenues given the province�s fiscal position.

"Health and education expenditures account for 55 per cent of all government spending. It was very interesting to hear that many of the people who participated in the consultations did not realize that, since 1992-93, government has increased the health operating budget by 46.5 per cent. In fact, since 1997-98, health operating expenditures have grown an average of 7.5 per cent annually. Most agreed that government cannot continue this rate of growth given the current economic realities.

"The next largest expenditure behind health and education is interest on the provincial debt. In 2001-02, government is spending $543 million just to service our debt," said Aylward. The minister says she received the overwhelming message that government must continue its efforts to balance the budget. "The majority of those who participated in the forums said government could incur a prudent deficit in the short term rather than implementing drastic cuts to health and education. However, they also said government must work towards a balanced budget in the long term."

Minister Aylward says her next steps will be to analyze the recommendations provided to her by those who participated in the process and, where possible, practically implement these suggestions. "The public consultation process has been very helpful for me. Many people came to the process with insightful suggestions for raising revenues and saving money and I thank them for taking the time and showing the interest. I have asked my staff to look into these suggestions to determine whether they can be implemented for the 2002- 03 budget," said Aylward.

Minister Aylward says she expects to announce a date for the budget shortly.

Media contact: Tara Laing, Communications, (709) 729-0329.

2002 02 15                           2:40 p.m.