The Honourable Jerome Kennedy, Minister of Finance and President of Treasury Board, today released Newfoundland and Labrador�s audited financial statements (Public Accounts) for the fiscal year ended March 31, 2008. The Public Accounts outline the province�s financial position and operating results of all organizations controlled by the Provincial Government.

The 2007-08 Public Accounts confirm a surplus of $1.4 billion. Newfoundland and Labrador�s net debt at March 31, 2008, was $10.2 billion, representing a significant decrease of $1.4 billion from the previous year.

"Government�s strategic and disciplined approach to fiscal management continues to improve Newfoundland and Labrador�s financial position," said Minister Kennedy. "This is evident from the 2007-08 audited financial statements which report a surplus for the third consecutive fiscal year."

The 2007-08 fiscal year saw a significant increase in the province�s resource-based revenues.

"While government has posted positive results for the past three years and is projecting to do so for a fourth consecutive year for 2008-09, fiscal performance is dependent on revenues which can be volatile in nature," said Minister Kennedy. "Fiscal prudence based on sound policies is essential to managing these resources and building a strong economy for our future."

The Public Accounts are prepared in accordance with the standards established for governments by the Canadian Institute of Chartered Accountants. The 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, 2008. The Public Accounts and related reports for 2007-08 are available via the following link: //www.gov.nl.ca/ComptrollerGeneral/publications.htm .

- 30 -

Media contact:

Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 685-2646
tansymundon@gov.nl.ca