Budget 2002: Striking the Right Balance

Finance Minister and President of Treasury Board Joan Marie Aylward today delivered Budget 2002 which outlined expenditures of approximately $4 billion. Budget 2002 projects a deficit of $93.3 million, which will pay for capital spending, with no borrowing for current account spending.

"This year�s budget reflects the views of Newfoundlanders and Labradorians which I heard during pre-budget consultations," said Aylward. "Government will continue its commitment to our programs, workforce, and the salary increases negotiated with public sector unions. We will also continue to make strategic investments in Health, Education and Youth Programs and other priority areas consistent with our financial capabilities."

Budget 2002 contains an increase in tobacco taxes paid on fine cut tobacco as well as manufactured cigarettes.

Highlights of this year�s budget include:

• $8.4 million in savings for school reorganization and declining enrolment will remain in school boards grants
  
• $10 million to address priority construction and renovation in the province�s school system
  
• $3.5 million earmarked for Memorial University to make university education more affordable
  
• $2.7 million annual commitment for an increase in salaries for home support workers
  
• $1.3 million to increase the rates for personal care homes and the number of subsidies for individuals
  
• $300,000 to increase enrolment for the nursing program
  
• $51 million for capital spending on health care facilities
  
• Increase in the threshold for the Newfoundland and Labrador Child Benefit
  
• $2 million to assist low income homeowners offset cost of the Fuel Tank Replacement Program

"Government is committed to maintaining a stable fiscal position. In November, in response to a rising deficit, government implemented cost control measures. These measures included a hiring freeze and a restriction on discretionary travel. These measures have worked and will continue into the 2002-2003 fiscal year," said Aylward. "We are forecasting a modest deficit for 2001-2002 of $63.5 million."

Other Budget highlights include:

• Several multi-year Municipal Capital Works Programs totalling $261 million over three years
  
• $12 million municipal Debt Relief Program
  
• $2.8 Million in support of the Renewal Strategy for Jobs and Growth
  
• $1.5 million for the safe drinking water initiative
  
• $82.2 million roads and highways construction program
  
• $3 million for forest access and agriculture roads, an increase of $600,000 over last year
  
• Additional $1 million for tourism marketing
  
• $1.8 million for newly established natural heritage initiative
  
• $405,000 is provided for the Citizens� Representative
  
• $462,700 is provided for the Child and Youth Advocate

"The province continues to experience economic growth and record employment levels," said Aylward. "Government will continue to work in partnership with the business sector, social groups and community partners to better link economic and social development in the province. This budget strikes the right balance between supporting economic growth and meeting the appropriate level of public services which is within our ability to fund. This budget represents good government policy."

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

2002 03 21                          3:00 p.m.