Province looking at an April budget

Loyola Sullivan, Minister of Finance and President of Treasury Board, announced today government will bring down the 2004-2005 provincial budget sometime in April. The fiscal year for the province ends on March 31 and typically the budget is brought down before this date. The budget can, however, come down after this date and the minister outlined government�s reasons for bringing down an April budget.

"As everyone knows, the province is facing a very serious fiscal situation and the issues we are dealing with this year in terms of a provincial budget are complex and numerous," said Minister Sullivan. "Our government has inherited the worst deficit this province has ever seen, and projections for the coming years forecast deficits of $1 billion or more which is absolutely unsustainable. It is imperative that we act now to address the situation. We must also outline a plan for the coming years that ensures we maintain our financial integrity in the marketplace. If we do not demonstrate that we have a long-term sustainable plan it will create even more problems into the future."

The minister noted that although some critics claim that the province�s fiscal situation is not as bad as is being portrayed by government, nothing could be further from the truth. "The facts are clear and overwhelming. Previous administrations have left this province facing a very grave fiscal situation, and we have some tough decisions to make as a government to protect the future of our province," added the minister. "The Cabinet met for more than 11 hours on Saturday, and the enormity of the situation was clear. We want to make smart decisions to ensure vital programs and services continue for the people of the province, but recognizing that government cannot be all things to all people. We want to do it right, and in order to achieve this we have decided to take the time we need. This means that we will not have a March budget."

The minister also added that the federal government is bringing down a later than usual budget this year. Typically the federal budget comes down sometime in February, however, due to changeover in leadership at the federal level, the budget is coming down March 23. "We are anxious to see what is in the federal budget, and to determine what, if any, effect it will have on Newfoundland and Labrador�s fiscal situation."

Media contact: Diane Keough, Director of Communications, (709) 729-6830.