Province Posts $199.3 Million Surplus for 2005-06

The Honorable Loyola Sullivan, Minister of Finance and President of Treasury Board, released the province�s 2005-06 audited Public Accounts today for the fiscal year ending March 31, 2006, recording a $199.3 million surplus � the largest surplus in the province�s history.

�This surplus is a significant improvement from the projected deficit of $492 million originally budgeted,� said the minister. �The audited financial statements for 2005-06 confirm that government has continued to build on the achievements of the 2004-05 fiscal year and improved the overall financial position of the province.�

The change is due to a number of factors, including sound fiscal management, the success of finalizing the 2005 Atlantic Accord agreement and improved offshore oil revenues.

Minister Sullivan added that the province's net debt at March 31, 2006 was $11.7 billion, a decrease of $203.6 million from the year before. The net debt per capita for 2005-06 was $22,733.

�While great progress has been made in eliminating the past trend of significant annual deficits, we must continue to focus our attention on the province's debt,� said Minister Sullivan. "We are on the right path but there is still a long road ahead before we achieve sustainable and sound fiscal footing.�

The Public Accounts show the province is still carrying a debt-load of $11.7 billion provincial debt, with a financial situation that is more reliant on inherently volatile oil revenues.

�This fact only demonstrates the need for us to continue to be prudent and conservative in our fiscal planning,� said the minister.

The financial statements outline the province�s financial position and operating results of all organizations controlled by government (Volume I of the Public Accounts).

The Public Accounts (consolidated summary financial statements) are prepared in accordance with the standards established for governments by the Canadian Institute of Chartered Accountants.

These financial statements, as well as the financial statements of the Consolidated Revenue Fund, were independently audited by the Auditor General who confirmed the financial results reported for March 31, 2006.

The Public Accounts and related reports for 2005-06 are available via the following link: //www.gov.nl.ca/ComptrollerGeneral/publications.htm

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