NLIS 6
November 30, 2004
(Executive Council)
 

2004 Public Accounts (Financial Statements) released

The province�s audited Public Accounts (Financial Statements) for the fiscal year ended March 31, 2004 were released today by Loyola Sullivan, Minister of Finance and President of Treasury Board. 

"The 2004 Public Accounts confirm that government is facing a serious fiscal situation. The statements indicate a number of financial trends facing our province, including the highest ever recorded deficit for the province, rising net debt, an increasing salary budget, and increasing expenditures with minimal growth on the revenue side," said Minister Sullivan. "We must improve the financial situation of our province, and government remains committed to achieving that goal." 

Some of the key highlights in the 2004 Public Accounts include:

• The deficit for 2003-04 was $914 million, the highest ever recorded, with the cash component of the deficit at $135 million. Since 2000, the deficit has grown $645 million or 240 per cent.
  
  
• Since 2000, provincial expenditures have grown by almost $1 billion while provincial revenues have grown by only $320 million.
  
  
• The province�s net debt now stands at $11.5 billion. Since 2000, the province�s net debt has grown by $3.4 billion, an increase of 42 per cent.
  
  
• Net debt per capita is $22,142, an increase of 46 per cent since 2000.
  
  
• Since 2000, salary costs have grown by almost $500 million.

The financial statements take into account all of the assets, liabilities, revenues, and expenses within government�s control, and are prepared on a accrual basis, in accordance with the accounting standards established for governments by the Canadian Institute of Chartered Accountants. The Public Accounts are comprised of four volumes. The Auditor General confirms the financial results for March 31, 2004, through his independent audit of Volumes I and II.

In response to new accounting standards established by the Canadian Institute of Chartered Accountants, some changes have been applied to the formats of Volumes I and II for 2004. The primary change involves recording tangible capital assets on the Statement of Financial Position. This accounting treatment has been applied retroactively to prior years with comparative figures for 2003 restated accordingly.

Another new feature is Volume I now includes a section entitled Understanding the Financial Health of the Province of Newfoundland and Labrador which provides analysis and discussion on the financial statements. "This section promotes accountability through the disclosure and discussion of significant financial trends, ratios, and variance analysis of the province�s financial position," explained the minister.

"There is little doubt that our province�s fiscal situation is at a crucial juncture, and the province cannot continue to incur significant increases in its liabilities and deficits. We must turn the situation around and the first step to do that is to eliminate the cash component of the deficit by 2007-08. That was a commitment we made, and that is a commitment we will deliver," said Minister Sullivan.

The 2004 Public Accounts are available on the government Web site at www.gov.nl.ca/ComptrollerGeneral/pubs.htm

Media contact: Diane Keough, Communications, (709) 729-6830 or (709) 685-4401

2004 11 30                                     2:40 p.m.