A BALANCED BUDGET
Mr. Speaker, it is my pleasure to present to this Honourable
House today, a totally balanced Budget - a Budget that requires
no borrowing, either for current account or for capital account;
and, a Budget that requires no new taxes and no tax increases.
Our progress in deficit reduction over the last four years has
been the most consistent of any government in Canada. This
progress is a result of our comprehensive strategy to strengthen
the foundation on which the fiscal, economic and social future of
Newfoundland and Labrador will be built. It has been our
objective to restore the fiscal flexibility of this Province, and
we remain on course.
We have achieved a current account surplus in 1994-95. In our
1994 Budget, we committed to eliminating our current account
deficit in 1995-96. We have delivered on that commitment one year
ahead of schedule.
Last year, Premier Wells indicated that we would strive to
achieve a totally balanced Budget by 1996-97. With the aid of
some extraordinary revenues, we will deliver on that objective
one year ahead of schedule.
But neither of these accomplishments can be one-time
achievements. We must ensure that Government balances future
budgets, and begins to reduce the debt burden that is the legacy
of past deficits. The benefits of a deficit free Government to
our generation will be substantial. The benefits of debt
reduction to future generations will be immense.
Achieving our fiscal plan requires that we meet many significant
challenges: major reductions in transfer payments from the
Government of Canada; high public debt; a structural deficit; the
need for economic renewal, particularly in light of the collapse
of our groundfish industry; and unfunded liabilities in our
public sector pension plans. We must overcome these challenges
with a realistic plan and the determination to make it work.
THE FISCAL STRATEGY
Mr. Speaker, the first element in our fiscal strategy is to bring
about change in the services we provide and the way they are
delivered. The result must be more efficient, cost-effective and
affordable government.
The second element in our strategy is to strengthen our revenue
base by ensuring a growing, productive economy, and by attaining
a more equitable transfer arrangement from the Government of
Canada.
CONTROLLING OUR EXPENDITURES
Mr. Speaker, we must continue to implement less costly ways to
provide public services, while improving the
effectiveness,quality and delivery of core programs. In 1995-96,
there will be additional restraints imposed on the operating
spending of all government departments and agencies. Some
measures will apply across all programs, others will be directed
at specific programs and services. Some job losses will result.
We have made significant progress in rationalizing and
restructuring both the management and the delivery of health
programs through board restructuring, and by changing the role of
some facilities to fit a more efficient regional service focus.
These ongoing changes will enable quality health care to be
provided in all regions of the Province in a cost-effective
manner. Funding in 1995-96 will not be reduced from last year's
level.
Commencing in 1995-96, responsibility for home care services,
formerly provided by the Department of Social Services, will be
transferred to the Department of Health. Services will be
delivered through a single entry system which will provide for
coordination and effective delivery of programs by regional
community health boards, ranging from home care to high level
nursing care.
Cost efficiencies in the education system will be achieved,
partially through normal adjustments in response to declining
enrolments. Implementation of the recommendations of the Royal
Commission on Education also is contributing to a more efficient
system. In addition, discussions have been renewed with church
groups to pursue educational reforms which, when implemented,
will create a more efficient system for the benefit of our
students.
In line with restraint measures imposed across Government, the
grant to Memorial University of Newfoundland and other
post-secondary contributions will be reduced below 1994-95
levels. Government anticipates that these educational
institutions will implement efficiency measures in order to avoid
reductions in student access to education programs. We also
expect that these reductions will not cause financial hardships
to students or to the institutions themselves.
Mr. Speaker, the costs of social assistance, until now, have been
shared equally in a longstanding partnership between the Province
and the Government of Canada. The Federal Government has ended
its equal cost-sharing commitment to social assistance by
freezing their contribution for 1995-96 at the previous year's
level. Unlike the situation in many provinces, the number of
families needing assistance in Newfoundland and Labrador
continues to rise. The federal restraint will create a shortfall
of $15 million in social assistance funding in 1995-96. While
basic assistance rates will remain unchanged, some benefits will
have to be reduced, and other savings will be achieved through
administrative efficiencies.
Achieving the reforms necessary to ensure sustainable services
and affordable government must be undertaken with the cooperation
and input of stakeholders. Mr. Speaker, this Government is
committed to a process of open consultation.
Collective agreements providing for a continuation of
compensation restraint in 1995-96 already have been negotiated
with most bargaining units. The same restraints will apply to
non-bargaining, management and executive staff, and Members of
the House of Assembly.
This year Government will be consulting with employee
representatives to develop an equitable approach to addressing
the unfunded liability in public sector pension plans, which now
has reached a level of $2.4 billion. We must act now to protect
the Province's financial position over the long term, and to
secure the pensions of our public employees. A solution must be
found this year, and both Government and employees must
contribute to that solution.
Also, we will seek the input of the Newfoundland and Labrador
Federation of Municipalities before we determine future levels of
funding and services we provide to municipalities. The Province
traditionally has provided considerable funding and services to
municipalities to assist them to provide basic services and make
capital improvements. This relationship must be re-examined in
light of prevailing fiscal realities.
The long-term viability of the Province's forest industry
requires responsible planned management, through the development
of new technologies and maintenance of silviculture efforts. The
Federal Government will no longer cost-share forestry programs
with the Province and the pulp and paper industry. Government has
decided that in spite of the federal withdrawal, these programs
must be substantially maintained, and the Province will be
funding them in this Budget.
Mr. Speaker, as part of our deficit elimination plan, our capital
account spending program for 1995-96 is lower than it has been in
recent years. Despite this reduction, expenditures related to
Hibernia and the national infrastructure program will help
sustain a high level of capital investment and construction
activity in the Province.
As part of our privatization initiative, we are taking steps to
enhance the commercial viability of Newfoundland Farm Products
Corporation. We are reducing the annual operating subsidy, and
will discuss with management and employee representatives ways to
achieve these reductions. Also, we will start phasing out the
subsidy to broiler producers.
As another efficiency measure, the Farm Development Loan Board
and the Fisheries Loan Board will be merged with Enterprise
Newfoundland and Labrador. This measure will enhance service
quality by increasing access to services for farmers and fishers
through the regional office network.
We are continuing to consolidate the administration divisions of
departments. This year the administration divisions in the
Departments of Environment, Employment and Labour Relations and
Tourism, Culture and Recreation will be merged into one unit.
Mr. Speaker, while these measures assist us in dealing with the
problem this year, we also must address foreseeable fiscal
challenges impacting upon subsequent years. In 1996-97, we will
have about $160 million less revenue, because of the restraint of
federal transfers for social programs and the extraordinary
revenues realized in 1995-96. Growth in other revenue sources
will be insufficient to offset this. We have begun the process of
dealing with this challenge.
Government recognizes that it is difficult to effectively plan
for the efficient long-term delivery of programs and services,
when they are subject to the funding uncertainty inherent in an
environment of continuing restraint. Government will immediately
implement a process to develop multi-year operating plans for
departments and agencies, as well as hospital and school boards.
Each department and agency will prepare a multi-year human
resource strategy during 1995-96. This will allow for a gradual
and orderly reduction of compensation costs, which now account
for two-thirds of program spending. A planned approach will
enable us to take maximum advantage of normal attrition within
the public service to lessen our compensation needs.
STRENGTHENING OUR REVENUES
Mr. Speaker, expenditure measures are only one element of our
fiscal strategy. We must continue to strengthen our revenue base
- both transfers from the Government of Canada and our own tax
sources.
Reductions in transfer payments for social programs announced in
the 1994 and 1995 Federal Budgets will result in a revenue loss
of an estimated $110 million in 1996-97, escalating to $160
million in 1997-98. These reductions will cause hardship in this
Province, particularly if our social assistance caseloads
continue to increase because of unemployment insurance reforms
and the phase-out of assistance to people displaced as a result
of the groundfish crisis.
Mr. Speaker, if transfers overall must be restrained as a part of
federal deficit reduction, then the only way to treat all
Canadians fairly and equitably is for the Government of Canada to
allocate the remaining funds on the basis of demonstrated need.
Funding must not be allocated on a per capita, or an historical
share basis. The Constitution commits to ensuring reasonably
comparable levels of services at reasonably comparable levels of
taxation. Mr. Speaker, that commitment must be honoured!
In addition to attaining a more equitable fiscal transfer
arrangement, we must pursue economic growth and job creation to
strengthen the tax base of this Province and lessen fiscal as
well as economic disparities.
Our Strategic Economic Plan continues to guide us toward
long-term economic renewal. Consistent with the objectives and
vision of this plan, Government has undertaken many initiatives
designed to increase the attractiveness of the Province as a
place to do business. These include the establishment of economic
zones, tax reform, regulatory reform, and the recently enacted
Economic Diversification and Growth Enterprises Act. In keeping
with this strategy, the Province will implement a Scientific
Research and Experimental Development tax credit in 1996, after
consultations with the business community.
There are a number of positive signs in the Newfoundland and
Labrador economy that give us cause for optimism. Our forest and
mining sectors are performing strongly. Hibernia is proceeding on
schedule. The Terra Nova oilfield is expected to be the next
offshore development, and negotiations are being actively pursued
with members of the Terra Nova consortium. Oil exploration is
taking place on the west coast of the Province. There have been
several significant mineral discoveries with development
potential in the short term, including Voisey Bay, potentially
one of the largest nickel-cobalt discoveries in Canada.
The rate of small business formation in this Province is amongst
the highest in Canada. Several Newfoundland companies are making
inroads in the growing high technology field. Newfoundland and
Labrador has considerable tourism potential, and the Cabot 500
celebrations should generate considerable activity in 1997.
THE FISCAL PERFORMANCE - 1994-95
Mr. Speaker, during 1994, growth in the Newfoundland and Canadian
economies exceeded expectations, contributing to higher than
expected revenues from our own tax sources and from equalization
payments. Expenditures also were somewhat higher than Budget,
mainly because of increased social assistance and employment
programs, and the decision to reduce public sector compensation
restraints.
As a result, for 1994-95 we will achieve a surplus of $25.1
million on current account compared with a budgeted deficit of
$24.6 million. Our net capital account spending also will be
below Budget, by $10.7 million.
Mr. Speaker, our total budgetary requirement for 1994-95 will be
$136.3 million. This is over $60 million below the amount
estimated in the Budget, and is the lowest level of borrowing for
budgetary purposes in 14 years. That, Mr. Speaker, is not
projected. That is achieved.
Achieving the surplus on current account was made possible partly
by the receipt of a $31 million payment from the Government of
Canada to enable the Province to assume responsibility for the
south coast ferry service. The balance of this $55 million
agreement will be paid in 1995-96 and 1996-97. Even without this
payment, our budgetary requirement would have been almost $30
million below our Budget estimate. Mr. Speaker, we have bettered
our target.
----------------------------------------------------------------- Table 1 SUMMARY OF 1994-95 FINANCIAL PERFORMANCE ($ millions) ----------------------------------------------------------------- Budget Revised 1994-95 1994-95 Variance Current Account Gross Expenditure 3,171.2 3,218.5 (47.3) Related Revenue 332.1 391.7 59.6 Net Expenditure 2,839.1 2,826.8 12.3 Provincial and Federal Revenues 2,814.5 2,851.9 37.4 Current Account (Deficit)/ Surplus ( 24.6) 25.1 49.7 Capital Account Gross Expenditure 300.0 311.2 (11.2) Related Revenue 127.9 149.8 21.9 Net Expenditure 172.1 161.4 10.7 Total Budgetary Deficit ( 196.7) ( 136.3) 60.4 ----------------------------------------------------------------- ----------------------------------------------------------------- Table 2 PROVINCE OF NEWFOUNDLAND Main Economic Indicators (percentage change) ----------------------------------------------------------------- 1994 1995 Gross Domestic Product Nominal 5.8 6.3 Real 3.4 3.0 Personal Income Nominal 1.5 2.5 Real 0.2 0.8 Retail Sales Nominal 3.2 3.2 Real 2.5 1.3 Investment Nominal 13.1 10.9 Real 11.8 7.0 Consumer Price Index 1.3 1.6 Employment 0.7 1.7 Unemployment Rate (percent) 20.4 20.2 -----------------------------------------------------------------
THE FISCAL OUTLOOK - 1995-96
Mr. Speaker, in 1995, the Canadian economy is expected to
continue to grow, although at a more moderate rate. The
Newfoundland economy also will grow in 1995, albeit at a pace
slower than the rest of the country. The goods producing sector,
with the exception of the fishery, will contribute most to this
growth.
Revenue growth from a stronger economy is not sufficient, by
itself, to achieve a totally balanced Budget in 1995-96. The
expenditure measures on both current and capital account
contained in this Budget, when combined with dividends from
Newfoundland and Labrador Hydro and extraordinary revenues, will
allow us to eliminate our total budgetary requirement and achieve
a small surplus in 1995-96.
The extraordinary revenue gains for 1995-96 will reduce net
expenditures by about $90 million. They also will generate
interest cost savings of about $8 million annually, reducing the
deficit problems we must deal with in coming years. These
extraordinary gains include: the second payment from the
Government of Canada pertaining to the south coast ferry service;
bringing into revenues accumulated sinking fund surpluses; and,
proceeds from privatization of some government-owned
corporations.
Mr. Speaker, Newfoundland and Labrador Hydro will pay the people
of the Province a return on their investment in the electrical
industry. Accordingly, Government will receive an annual
dividend, starting in 1995-96. In the initial year, this dividend
will be $19.6 million. The major portion of this dividend
represents profits earned by Hydro on its electrical sales
throughout Newfoundland and Labrador. The balance represents that
part of the annual dividend which Hydro receives from Churchill
Falls (Labrador) Corporation which is in excess of Hydro's cost
of servicing the debt related to the purchase of shares in that
corporation.
----------------------------------------------------------------- Table 3 ESTIMATED BUDGETARY POSITION ($ millions) ----------------------------------------------------------------- Estimates Revised 1995-96 1994-95 Current Account Gross Expenditure 3,270.4 3,218.5 Related Revenue 456.6 391.7 Net Expenditure 2,813.8 2,826.8 Provincial and Federal Revenues 2,941.7 2,851.9 Current Account Surplus 127.9 25.1 Capital Account Gross Expenditure 272.8 311.2 Related Revenue 146.8 149.8 Net Expenditure 126.0 161.4 Total Budgetary Surplus/(Deficit) 1.9 ( 136.3) -----------------------------------------------------------------
Our total budgetary requirement for 1995-96 will be eliminated,
and, on current and capital account combined we will achieve an
overall surplus of $1.9 million.
Mr. Speaker, even without the extraordinary revenues, the
esulting budgetary requirement of about $88 million for 1995-96
ould have represented a considerable improvement over previous
years. It also would have represented a notable achievement in
continuing the downward trend in deficits established over a
five-year period.
OUR STRATEGY IS WORKING
Mr. Speaker, in 1995-96 the Province will achieve a balanced
budget on current and capital account combined for the first time
since Confederation. A consistent approach to prudent deficit
reduction undertaken over several budgets, combined with some
fortuitous factors, will allow us to realize that goal this year.
Government is committed to seeing this objective achieved, and to
seeing that this achievement will be a foundation on which future
balanced budgets will be built.
There are many significant fiscal challenges ahead of us. No
single budget can offer a solution to all of these challenges.
But each budget must be an incremental step that makes its
contribution to the restoration of fiscal flexibility to this
Province. Each budget must build on the foundation of those that
precede it, and become part of the sound fiscal foundation for
those budgets that will follow it.
This foundation is essential to the attainment of our economic
and social objectives. All Newfoundlanders and Labradorians, of
present and future generations, will share in the benefits. There
is simply no acceptable alternative. As a people, we will be able
to enjoy the economic and social well-being necessary for a full
and rewarding life in this Province only if a sustainable, sound
fiscal foundation is built.
Mr. Speaker, this Budget is an integral component of that
foundation. It will set us to work, better prepared to surmount
the fiscal challenges which must be overcome to secure the future
balanced budgets that this Province must, and will, achieve.
APPENDIX
SUPPLEMENTARY BUDGET DETAILS
GENERAL
The Province is projecting a surplus on its combined current and
capital account budget for 1995-96, partly as a result of
extraordinary revenues. The Budget provides $10,000,000 in new
spending for Strategic Economic Plan initiatives. Most
departments and agencies of Government have had their operating
expenditures cut by a minimum of 3 percent. The Government
remains committed to ensuring a positive business and service
environment and is continuing its funding for regulatory reform.
Administration divisions of the Departments of Environment,
Employment and Labour Relations, and Tourism, Culture and
Recreation will be consolidated. The 1994 federal budget
announced that, starting in 1995-96, transfers to provinces under
the Canada Assistance Plan would be capped at last year's level.
This will cost the Province approximately $15,000,000. As a
result, the Province will be implementing measures to save up to
$10,000,000 in the social services and home support areas. Year
two of the Master Agreement of the public sector wage restraint
program is reflected. Government is committed to the principle of
pay equity and funds are provided for its implementation
throughout the general services and health care sectors of the
public service. Government will be divesting itself of two Crown
corporations(Newfoundland Hardwoods Limited and Hotel Buildings
Limited) consistent with its theme of privatization. A
$19,600,000 dividend will be received from Newfoundland and
Labrador Hydro.
EXECUTIVE COUNCIL
Provision has been made to undertake additional work toward land
claims settlements in Labrador. The Budget provides funds for the
continuation of the Province's Strategic Social Plan. The
Province will be hosting the annual Conference of Premiers in
1995-96, and funding is provided for this event. Funding is
provided for the Provincial Advisory Council on the Status of
Women.
LEGISLATURE
Funding is provided for the Select Committee of the House, which
has been mandated to review all aspects of "Children's
Interests".
PUBLIC SERVICE COMMISSION
Funds have been allocated to establish a service quality unit to
increase awareness among all public servants of our service role
in respect of our taxpayers. The Opening Doors Program is
continuing and provides for a career development program for
persons with disabilities.
WORKS, SERVICES AND TRANSPORTATION
The re-organization of the department which started in 1994-95
will be completed in 1995-96. A major effort will be undertaken
to enhance the signage on the Province's main highways.
$81,200,000 has been provided for the Province's highways. The
Province will be assuming the ferry services currently being
operated by Marine Atlantic on the south coast and the White Bay
service. It is planned to provide daily service to all affected
communities.
ENVIRONMENT
Funding is provided for completion of environmental pollution
clean-up at high risk sites. Funding of $105,000 is provided to
assist in the development of new consolidated environmental
legislation for the Province. $41,000 is provided to develop an
Integrated Pest Management Awareness Program for use within the
Atlantic Provinces.
FISHERIES, FOOD AND AGRICULTURE
The Fisheries Industry Development Agreement will continue for
1995-96. The Province is phasing out its subsidies to the broiler
industry. Reductions will be made to the price support paid to
producers ($1,000,000). The operating subsidy paid to
Newfoundland Farm Products Corporation will be reduced.
INDUSTRY, TRADE AND TECHNOLOGY
Additional funds have been provided for the identification of new
business investments, trade opportunities and market development
for the Province. Additional funds have been provided for the
development of the Province's technology and information systems
sector. Operations of the Fisheries Loan Board and the Farm
Development Loan Board will be merged with Enterprise
Newfoundland and Labrador. The Economic Diversification and
Growth Enterprises (EDGE)Program is to be emphasized in 1995-96
and appropriate funds have been provided in this regard. The
Economic Recovery Commission will continue the implementation of
the 19 economic zones across the Province.
NATURAL RESOURCES
The Province will fund forestry initiatives of $10,000,000 to
replace the long standing cost-shared agreement which the Federal
Government is no longer supporting. Monies will be spent on
forestry renewal work. The Canada-Newfoundland Cooperation
Agreement on Mineral Development will continue for 1995-96. Over
$3,000,000 has been provided to assist with a provincial insect
control program. This program will be cost-shared with the paper
mill operators. Work associated with monitoring and assessing the
state of the Province's wildlife populations will be funded in
1995-96. Government will be eliminating funding for the Energy
Efficiency and Alternate Energy Division.
TOURISM, CULTURE AND RECREATION
The Province will continue to fund the John Cabot 500th
Anniversary Celebrations Corporation. Appropriations have been
made for planning and development of the Newfoundland T'railway
Park. Funding of $1,000,000 has been provided for the first year
of a five-year program to enhance the provincial parks across the
Province. There will be minor fee increases for use of provincial
parks.
EDUCATION AND TRAINING
The Canada-Newfoundland Cooperation Agreement for Human Resource
Development continues to be funded in the amount of $12,600,000
(gross). Funding of $18,299,000 is provided for construction in
the education system. Memorial University's total grant is
reduced by 2.2 percent from last year's level.
EMPLOYMENT AND LABOUR RELATIONS
The Youth Employment Strategy Program will continue to be funded
in 1995-96. The Strategic Initiatives Program designed to provide
meaningful employment opportunities for targeted individuals is
funded at $10,600,000. The Preventive Mediation Program and
funding for the Education and Research Centre will continue for
1995-96.
HEALTH
The Home Support Program ($20,000,000) has been transferred from
the Department of Social Services to the Department of Health and
will be delivered by the new regional community health boards.
The restructuring process will continue through 1995-96 with a
view to decreasing administrative costs while maintaining and
enhancing patient care. There will be continued emphasis on day
surgery, reduced length of hospital stays, and closure of
underutilized beds. Funding of $17,257,000 is provided for
capital improvements in the health care system. Changes to the
benefits provided by the Medicare, Drug, and Dental programs will
save $950,000.
JUSTICE
Funding is provided for legal research and advice associated with
land claims settlements in Labrador. There will be minor fee
increases for the securities and sheriff's office areas.
MUNICIPAL AND PROVINCIAL AFFAIRS Five "Government
Service Centres" will be established across the Province.
Funding of $40,000,000 is provided for the continuation of the
Canada-Newfoundland Infrastructure Agreement for 1995-96 to meet
cashflow requirements. Except for those municipalities who can
finance 100 percent of their obligations through Newfoundland
Municipal Financing Corporation (NMFC), there will be a
moratorium on new municipal capital works projects for 1995-96
that are not funded under the Infrastructure Program. Total
spending in the municipal sector is approximately $96,000,000.
Consultations will be held with the Newfoundland and Labrador
Federation of Municipalities to examine our current program of
assistance to municipalities as well as other expenditure areas
to achieve savings of $1,500,000 in 1995-96.
SOCIAL SERVICES There is continued funding of $11,500,000
for an Employment Opportunities Program specifically for social
assistance recipients. The investigation program aimed at
curtailing inappropriate use of social services programs
continues and five additional staff are being added in 1995-96.
Savings will be achieved in the delivery of social services
programs through streamlining of certain non-basic allowances in
response to the federal freeze on Canada Assistance Plan payments
to the Province.
STATEMENT I NEWFOUNDLAND AND LABRADOR SUMMARY OF BORROWING REQUIREMENTS 1995-96 and 1994-95 (Revised) 1995-96 Estimates 1994-95 Revised ($000) ($000) ($000) ($000) BUDGETARY REQUIREMENTS Current Account: Gross Expenditure 3,270,412 3,218,471 Related Revenues (Note 1) 456,568 391,662 Net Expenditure 2,813,844 2,826,809 Provincial and Federal Revenues 2,941,700 2,851,940 Financial Contribution (127,856) (25,131) Capital Account: Gross Expenditure 272,804 311,275 Related Revenues 146,892 149,841 Net Expenditure 125,912 161,434 TOTAL BUDGETARY (CONTRIBUTIONS) REQUIREMENTS (1,944) 136,303 NON-BUDGETARY TRANSACTIONS DEBT RETIREMENT Redemptions (See Appendix II) 54,926 178,098 Sinking Funds (See Appendix II) 48,948 56,432 103,874 234,530 TOTAL BORROWING REQUIREMENTS (Note 2) 101,930 370,833 Note 1: Newfoundland Government Sinking Fund surplus earnings for 1995-96 include approximately $43 million relating to the early remittance of sinking fund balances which are currently in excess of the amount required to redeem the related debt. In prior years, these earnings were only remitted to the Province when the related debt was retired. Note 2: General borrowings include capital market issues, short term credit and treasury bills.
STATEMENT II COMPARATIVE SUMMARY OF CURRENT AND RELATED REVENUES 1995-96 and 1994-95 Revised 1995-96 1994-95 Estimates Revised ($000) ($000) PROVINCIAL: Taxation: Retail Sales Tax 577,000 563,000 Personal Income Tax 552,000 475,900 Gasoline Tax 130,000 125,500 Corporate Income Tax 56,500 53,100 Tobacco Tax 66,500 66,500 Mining Tax and Royalties 18,150 16,000 Payroll Tax 76,000 75,000 Other 25,400 24,980 1,501,550 1,399,980 General Revenues: Newfoundland Liquor Corporation 76,000 77,500 Vehicle and Drivers Licences 46,500 43,500 Lottery Revenues 70,000 68,000 Registry of Deeds 10,150 9,900 Fines and Forfeitures 8,950 8,750 Other 43,106 18,848 254,706 226,498 Expenditure Programs - Related Revenues: Recoveries - Sinking Fund Surpluses 70,633 19,249 Interest Income 15,067 13,504 Other 94,688 64,093 180,388 96,846 TOTAL: PROVINCIAL REVENUES 1,936,644 1,723,324 GOVERNMENT OF CANADA: Fiscal Transfer Payments: Equalization Payments 958,000 952,800 Established Programs Financing Grant 215,000 237,700 Provincial Share of Utility Companies Tax 150 9,150 Term 29 Award 8,000 8,000 Statutory Subsidies 1,754 1,754 Fiscal Stabilization 2,540 16,058 1,185,444 1,225,462 Cost Shared Programs: Canada Assistance Plan 192,489 203,501 Resource 9,684 14,129 Offshore Fund 5,898 3,483 Human Resources Development 16,769 14,262 Native Peoples 7,876 7,996 Other 43,464 51,445 276,180 294,816 TOTAL: GOVERNMENT OF CANADA REVENUES 1,461,624 1,520,278 TOTAL: CURRENT AND RELATED REVENUES 3,398,268 3,243,602
STATEMENT III SUMMARY OF CURRENT AND CAPITAL ACCOUNT EXPENDITURES 1995-96 and 1994-95 Revised 1995-96 1994-95 Gross Related Net Revised Expenditure Revenue Expenditure (Net) $ $ $ $ General Govermment Sector Consolidated Fund Services 606,262,300 105,440,100 500,822,200 532,829,900 Executive Council 22,672,100 886,600 21,785,500 21,824,800 Finance 44,179,300 49,149,700 (4,970,400) 26,660,200 Legislature 11,550,700 212,500 11,338,200 11,514,000 Public Service Commission 3,297,100 378,900 2,918,200 2,451,400 Works, Services and Transportation 254,609,600 92,055,000 162,554,600 149,722,000 Resource Sector Environment 7,259,400 1,199,800 6,059,600 7,290,600 Fisheries, Food and Agriculture 31,196,600 3,860,300 27,336,300 30,134,100 Industry, Trade and Technology 68,851,700 32,075,600 36,776,100 47,954,800 Natural Resources 55,683,100 8,117,000 47,566,100 56,188,700 Tourism, Culture and Recreation 35,482,400 10,263,100 25,219,300 25,222,500 Social Sector Education and Training 763,584,800 27,352,700 736,232,100 742,661,300 Employment and Labour Relations 29,762,500 10,691,600 19,070,900 24,545,600 Health 933,082,500 48,977,300 884,105,200 870,751,600 Justice 114,320,400 5,544,300 108,776,100 107,199,400 Municipal and Provincial Affairs 185,048,100 42,299,400 142,748,700 136,505,100 Newfoundland and Labrador Housing Corporation 15,244,400 2,000,000 13,244,400 15,107,000 Social Services 361,128,900 162,955,900 198,173,000 179,679,800 TOTAL 3,543,215,900 603,459,800 2,939,756,100 2,988,242,800 AMOUNT TO BE VOTED 1995-96 Gross Current and Capital Expenditure 3,543,215,900 Less: Expenditures Approved by Statute: Interest 540,834,300 Pensions and Gratuities 52,962,400 Debt Management Expenses 3,361,000 Issues under Guarantee 1,000,000 Salaries (Auditor General) 93,800 598,251,500 Amount to be Voted by Supply Bill 2,944,964,400
STATEMENT IV SUMMARY OF CURRENT ACCOUNT EXPENDITURES 1995-96 and 1994-95 Revised 1995-96 1994-95 Gross Related Net Revised Expenditure Revenue Expenditure (Net) ($000) ($000) ($000) ($000) General Government Sector Consolidated Fund Services 605,185 105,439 499,746 532,254 Executive Council 22,672 887 21,785 21,825 Finance 44,179 29,363 14,816 37,648 Legislature 11,551 213 11,338 11,514 Public Service Commission 3,297 379 2,918 2,451 Works, Services and Transportation 147,173 30,455 116,718 101,767 Resource Sector Environment 7,259 1,200 6,059 7,291 Fisheries, Food and Agriculture 26,098 3,209 22,889 26,332 Industry, Trade and Technology 50,159 12,693 37,466 31,144 Natural Resources 50,338 5,122 45,216 39,955 Tourism, Culture and Recreation 30,723 4,749 25,974 25,881 Social Sector Education and Training 738,921 26,740 712,181 720,415 Employment and Labour Relations 29,763 10,692 19,071 24,546 Health 909,826 48,317 861,509 847,519 Justice 114,320 5,544 108,776 106,449 Municipal and Provincial Affairs 102,975 6,610 96,365 95,056 Newfoundland and Labrador Housing Corporation 15,244 2,000 13,244 15,107 Social Services 360,729 162,956 197,773 179,655 TOTAL 3,270,412 456,568 2,813,844 2,826,809
STATEMENT V SUMMARY OF CAPITAL ACCOUNT EXPENDITURES 1995-96 and 1994-95 Revised 1995-96 1994-95 Gross Related Net Revised Expenditure Revenue Expenditure (Net) ($000) ($000) ($000) ($000) General Government Sector Consolidated Fund Services 1,077 1 1,076 576 Finance- 19,787 (19,787) (10,988) Works, Services and Transportation 107,436 61,600 45,836 47,955 Resource Sector Fisheries, Food and Agriculture 5,099 651 4,448 3,803 Industry, Trade and Technology 18,693 19,382 (689) 16,811 Natural Resources 5,345 2,995 2,350 16,234 Tourism, Culture and Recreation 4,760 5,514 (754) (659) Social Sector Education and Training 24,664 613 24,051 22,246 Health 23,257 660 22,597 23,232 Justice- - - 750 Municipal and Provincial Affairs 82,073 35,689 46,384 41,449 Social Services 400 - 400 25 TOTAL 272,804 146,892 125,912 161,434 Note: For details refer to EXHIBIT XIII.
STATEMENT VI SUMMARY OF RELATED REVENUES AND EXPENDITURES BY MAIN OBJECT AND SECTOR 1995-96 and 1994-95 Revised General Government Resource Social % Of Total Sector Sector Sector Total 1995/96 1994/95 1995/96 1995/96 1995/96 1995/96 Total Revised ($000) ($000) ($000) ($000) % ($000) Current: Salaries 99,358 57,007 138,124 294,489 9.0 288,401 Employee Benefits 92,758 620 1,484 94,862 2.9 120,277 Transportation and Communications 8,994 11,370 14,899 35,263 1.1 32,406 Supplies 32,129 5,866 13,472 51,467 1.6 49,442 Professional Services 5,045 6,031 49,959 61,035 1.9 55,736 Purchased Services 34,171 21,514 19,590 75,275 2.3 68,832 Property, Furnishings and Equipment 642 1,495 1,749 3,886 0.1 4,683 Loans, Advances and Investments 2 - - 2 - 2 Allowances and Assistance 4,610 318 368,748 373,676 11.4 345,455 Grants and Subsidies 7,554 57,959 1,647,934 1,713,447 52.4 1,696,200 Debt Expenses 542,006 - 4,899 546,905 16.7 530,915 Information Technology 6,788 2,397 10,920 20,105 0.6 26,122 Gross Current Expenditure 834,057 164,577 2,271,778 3,270,412 100.0 3,218,471 Federal Revenue Sources 21,906 20,221 234,053 276,180 60.5 294,816 Provincial Revenue Sources 144,830 6,752 28,806 180,388 39.5 96,846 Total Current Related Revenues 166,736 26,973 262,859 456,568 100.0 391,662 Net Current Expenditure 667,321 137,604 2,008,919 2,813,844 2,826,809 Capital: Salaries 6,786 130 290 7,206 2.6 7,372 Employee Benefits - - 1 1 - 1 Transportation and Communications 845 - 100 945 0.4 1,188 Supplies 1,407 25 11 1,443 0.5 967 Professional Services 5,180 100 1,084 6,364 2.3 7,592 Purchased Services 96,967 4,460 9,002 110,429 40.5 114,882 Property, Furnishings and Equipment 10,830 2,110 9,516 22,456 8.2 38,787 Loans, Advances and Investments 1,000 16,811 350 18,161 6.7 26,662 Grants and Subsidies 2,599 10,261 89,041 101,901 37.4 110,079 Debt Expenses 699 - 3,199 3,898 1.4 3,745 Expenditure by Sector before Recharges 126,313 33,897 112,594 272,804 100.0 311,275 Voted in Other Depart- ments and Divisions 5,862 - 17,800 23,662 23,759 Recharged to Other Depart- ents and Divisions (23,662) - - (23,662) (23,759) Gross Capital Expenditure 108,513 33,897 130,394 272,804 311,275 Federal Revenue Sources 58,000 11,447 36,302 105,749 72.0 121,736 Provincial Revenue Sources 23,388 17,095 660 41,143 28.0 28,105 Total Capital Related Revenues 81,388 28,542 36,962 146,892 100.0 149,841 Net Capital Expenditure 27,125 5,355 93,432 125,912 161,434 Total Net Expenditure 694,446 142,959 2,102,351 2,939,756 2,988,243
EXHIBIT I SELECTED ECONOMIC STATISTICS 1991 to 1994 % % % 1994 Change 1993 Change 1992 Change 1991 Population (000's) -as of July 1 582.4 -0.3 584.4 0.1 583.7 0.6 580.3 Gross Domestic Product ($ Millions)* 8,573 5.8 8,104 0.9 8,032 0.0 8,034 Total Personal Income ($ Millions) 10,294 1.5 10,139 1.3 10,009 2.6 9,759 Per Capita Personal Income ($) 17,675 1.9 17,349 1.2 17,148 2.0 16,817 Labour Force (000's) (Annual Average) 244 1.1 242 -0.5 243 -2.1 248 Employment (000's) (Annual Average) 195 0.7 193 -0.4 194 -4.3 203 Unemployment Rate (%) (Annual Average) 20.4 1.5 20.1 -0.5 20.2 10.4 18.3 Wages and Salaries ($ Millions) 4,704 3.0 4,567 0.9 4,526 -1.9 4,614 Consumer Price Index (1986 = 100) (Annual Average) (St. John's) 125.9 1.3 124.3 1.7 122.2 1.1 120.9 Total Volume of Fish Landings (Thousands of Metric Tonnes (Roundweight)) 131.6 -45.8 242.7 -14.3 283.2 -33.2 423.9 Total Value of Fish Landings ($ Millions) 212.1 9.2 194.2 -2.5 199.1 -23.8 261.4 Pulpwood Production (000 Cubic Metres) N/A N/A 1,879 12.1 1,676 -1.8 1,706 Newsprint Shipments (Thousand Tonnes) 736.6 4.7 703.9 5.6 666.6 4.8 636.0 Iron Ore Shipments (Millions of Metric Tonnes) 20.9 14.8 18.2 2.8 17.7 -10.6 19.8 Gross Value of Manufacturing Shipments ($ Millions)** 1,410 4.3 1,351 5.5 1,280 -11.6 1,448 Private and Public Capital Investment ($ Millions) 2,811 13.1 2,485 19.4 2,080 -0.9 2,099 Dwelling Starts (Number) 2,243 -6.7 2,405 5.9 2,271 -19.9 2,836 Retail Trade ($ Millions) 3,433 3.2 3,328 -0.9 3,359 -1.0 3,394 New Motor Vehicle Sales (Number) 20,225 3.5 19,544 0.7 19,410 -4.8 20,384 * at Factor Cost ** 1993 and 1994 estimated by Economics and Statistics Section, Cabinet Secretariat N/A - Not Available Notes: (1) Some data are preliminary. (2) Some percent changes are based on unrounded data. Source: Statistics Canada; Economics and Statistics Section, Cabinet Secretariat
EXHIBIT II ESTIMATED PROVINCIAL AND FEDERAL REVENUES 1995-96 and 1994-95 Revised 1995-96 1994-95 Estimates Revised ($000) ($000) PROVINCIAL TAX SOURCES: Retail Sales Tax 577,000 563,000 Personal Income Tax 552,000 475,900 Gasoline Tax 130,000 125,500 Corporate Income Tax 56,500 53,100 Tobacco Tax 66,500 66,500 Mining Tax and Royalties 18,150 16,000 Payroll Tax 76,000 75,000 Insurance Companies Tax 17,300 17,000 Corporate Capital Tax 5,900 5,780 Forest Management Tax 2,200 2,200 TOTAL: Provincial Tax Sources 1,501,550 1,399,980 OTHER PROVINCIAL SOURCES: Newfoundland Liquor Corporation 76,000 77,500 Vehicle and Driver Licences 46,500 43,500 Lottery Revenues 70,000 68,000 Registry of Deeds 10,150 9,900 Fines and Forfeitures 8,950 8,750 Inland Fish and Game Licences 2,800 2,800 Registry of Bills and Sales 1,950 1,850 Crown Lands 2,050 2,350 Foresty Royalties and Fees 1,200 1,150 Offshore Revenue Fund (Note 1) 24,200 - Water Power Rentals 3,800 3,800 Other 7,106 6,898 TOTAL: Other Provincial Sources 254,706 226,498 TOTAL: PROVINCIAL SOURCES 1,756,256 1,626,478 GOVERNMENT OF CANADA: Equalization 958,000 952,800 Established Programs Financing 215,000 237,700 PUITTA 150 9,150 Term 29 Award 8,000 8,000 Statutory Subsidies 1,754 1,754 Fiscal Stabilization 2,540 16,058 TOTAL: GOVERNMENT OF CANADA 1,185,444 1,225,462 TOTAL: PROVINCIAL AND FEDERAL REVENUES 2,941,700 2,851,940 Note 1: This item reflects a one time transfer of gross revenues from the Offshore Revenue Fund for the period 1986-87 to January, 1995. The net impact on total revenues after equalization would be about $7 million.
EXHIBIT III CURRENT AND CAPITAL REVENUES PROVINCIAL AND FEDERAL SOURCES 1991-92 to 1995-96 1995-96 1994-95 1993-94 1 992-93 1991-92 Estimates Revised Audited Audited Audited ($000) % ($000) % ($000) % ($000) % ($000) % Current Revenues: Provincial Sources 1936644 57.0 1723324 53.1 1679884 54.7 1677117 55.1 1662767 55.7 Federal Sources 1461624 43.0 1520278 46.9 1391642 45.3 1367284 44.9 1325070 44.3 Total: Current Revenues 3398268 100 3243602 100 3071526 100 3044401 100 2987837 100 Capital Revenues: Provincial Sources 41143 28.0 28105 18.8 16300 8.8 16249 10.9 7916 14.9 Federal Sources 105749 72.0 21736 81.2 70620 81.2 132966 89.1 102271 85.1 Total: Capital Revenues 146892 100 149841 100 86920 100 149215 100 120187 100 Current and Capital Revenues: Provincial Sources 1977787 55.8 1751429 51.6 1696184 53.7 1693366 53.0 1680683 54.1 Federal Sources 1567373 44.2 1642014 48.4 1462262 46.3 1500250 47.0 1427341 45.9 Total: Current and Capital Revenues 3545160 100.0 3393443 100.0 3158446 100.0 3193616 100.0 3108024 100
EXHIBIT IV EXPENDITURE SUMMARY 1995-96 Estimated Total Current Capital Head Gross Net Gross Net Gross Net ($000) ($000) ($000) ($000) ($000) ($000) Consolidated Fund Services 606,262 500,822 605,185 499,746 1,077 1,076 Executive Council 22,672 21,785 22,672 21,785 - - Finance 44,179 (4,971) 44,179 14,816 - (19,787) Legislature 11,551 11,338 11,551 11,338 - - Public Service Commission 3,297 2,918 3,297 2,918 - - Works, Services and Transportation 254,609 162,554 147,173 116,718 107,436 45,836 Environment 7,259 6,059 7,259 6,059 - - Fisheries, Food and Agriculture 31,197 27,337 26,098 22,889 5,099 4,448 Industry, Trade and Technology 68,852 36,777 50,159 37,466 18,693 (689) Natural Resources 55,683 47,566 50,338 45,216 5,345 2,350 Tourism, Culture and Recreation 35,483 25,220 30,723 25,974 4,760 (754) Education and Training 763,585 736,232 738,921 712,181 24,664 24,051 Employment and Labour Relations 29,763 19,071 29,763 19,071 - - Health 933,083 884,106 909,826 861,509 23,257 22,597 Justice 114,320 108,776 114,320 108,776 - - Municipal and Provincial Affairs 185,048 142,749 102,975 96,365 82,073 46,384 Newfoundland and Labrador Housing Corporation 15,244 13,244 15,244 13,244 - - Social Services 361,129 198,173 360,729 197,773 400 400 TOTAL 3,543,216 2,939,756 3,270,412 2,813,844 272,804 125,912 EXPENDITURE SUMMARY 1995-96 Revised Consolidated Fund Services 584,847 532,830 584,270 532,254 577 576 Executive Council 23,503 21,825 23,503 21,825 - - Finance 42,901 26,660 42,901 37,648 - (10,988) Legislature 11,749 11,514 11,749 11,514 - - Public Service Commission 2,632 2,451 2,632 2,451 - - Works, Services and Transportation 256,867 149,722 142,137 101,767 114,730 47,955 Environment 9,928 7,291 9,928 7,291 - - Fisheries, Food and Agriculture 42,360 30,135 29,983 26,332 12,377 3,803 Industry, Trade and Technology 81,640 47,955 41,604 31,144 40,036 16,811 Natural Resources 63,597 56,189 45,932 39,955 17,665 16,234 Tourism, Culture and Recreation 38,048 25,222 30,839 25,881 7,209 (659) Education and Training 773,314 742,661 744,756 720,415 28,558 22,246 Employment and Labour Relations 30,220 24,546 30,220 24,546 - - Health 934,747 870,751 909,825 847,519 24,922 23,232 Justice 112,399 107,199 111,649 106,449 750 750 Municipal and Provincial Affairs 164,413 136,505 99,987 95,056 64,426 41,449 Newfoundland and Labrador Housing Corporation 18,376 15,107 18,376 15,107 - - Social Services 338,205 179,680 338,180 179,665 25 25 TOTAL 3,529,746 2,988,243 3,218,471 2,826,809 311,275 161,434
EXHIBIT V PUBLIC SECTOR DEBT 1991 to 1995 Five Years ending March 31 1995** 1994* 1993 1992 1991 (Millions of dollars) Provincial Direct Debt: Payable in Canadian Dollars 1,877.6 1,888.3 1,758.3 1,705.9 1,624.9 Due Government of Canada 796.9 827.2 862.8 860.3 847.8 Payable in U.S. Dollars 1,792.0 1,729.4 1,441.0 1,358.2 1,573.3 Payable in Other Currencies 1,156.2 954.5 806.9 737.5 615.9 Total Direct Debenture Debt 5,622.7 5,399.4 4,869.0 4,661.9 4,661.9 Treasury Bills 390.0 286.0 286.0 286.0 130.0 Total Provincial Direct Debt 6,012.7 5,685.4 5,155.0 4,947.9 4,791.9 Crown Corporation and Other Debt: Utility 1,357.2 1,335.6 1,386.6 1,365.4 1,221.1 Housing 132.9 163.6 170.8 161.1 135.3 Municipal 744.1 736.8 697.5 651.1 634.2 Other 123.2 99.1 78.3 86.8 110.2 Total Crown Corporation and Other Debt 2,357.4 2,335.1 2,333.2 2,264.4 2,100.8 Deduct Sinking Funds held for Redemption of Debt: Provincial Obligations 1,087.7 994.2 884.6 1,029.9 1,242.1 Guaranteed Debt 449.9 421.6 426.2 388.0 360.1 Total Sinking Funds 1,537.6 1,415.8 1,310.8 1,417.9 1,602.2 Total Public Sector Debt (Note 1) 6,832.5 6,604.7 6,177.4 5,794.4 5,290.5 * Preliminary ** Forecast Note 1: Debt payable in foreign currencies is shown at the Canadian dollar equivalent using the rates of exchange in effect March 31 of each year.
EXHIBIT VI SUMMARY OF CURRENT REVENUES (By Source) WHERE THE MONEY COMES FROM Percentage Of Total Source Amount ($000) Revised Estimate Estimate Revised 1994-95 1995-96 1995-96 1994-95 Provincial: 17.4 17.0 Retail Sales Tax 577,000 563,000 14.7 16.2 Personal Income Tax 552,000 475,900 3.8 3.8 Gasoline Tax 130,000 125,500 2.4 2.2 Newfoundland Liquor Corporation 76,000 77,500 1.6 1.7 Corporate Income Tax 56,500 53,100 2.1 2.0 Tobacco Tax 66,500 66,500 11.1 14.1 Other Provincial Sources 478,644 361,824 53.1 57.0 Total: Provincial 1,936,644 1,723,324 Government of Canada: 29.4 28.2 Equalization Payments 958,000 952,800 7.3 6.3 Established Programs Financing Grant 215,000 237,700 6.3 5.7 Canada Assistance Plan 192,489 203,501 3.9 2.8 Other Federal Sources 96,135 126,277 46.9 43.0 Total: Government of Canada 1,461,624 1,520,278 100.0 100.0 Total 3,398,268 3,243,602
EXHIBIT VII SUMMARY OF CURRENT ACCOUNT EXPENDITURES (By Function) WHERE THE MONEY GOES Percentage of Total Function of Expenditure Amount ($000) Revised Estimate Estimate Revised 1994-95 1995-96 1995-96 1994-95 Expenditure: 21.3 21.1 Education 715,528 692,352 24.2 23.3 Health 793,090 785,151 16.4 16.2 Debt Charges and Other Financial Expenses 550,265 532,166 14.3 14.1 Social Welfare 480,265 464,826 4.0 4.1 Natural Resources, Agriculture, 140,505 131,069 Trade, Industry and Tourism 6.8 5.8 General Government 196,193 219,895 4.5 4.4 Protection to Persons and Property 148,280 145,009 3.0 2.9 Transportation and Communications 99,554 96,308 4.7 4.3 Other 146,732 151,695 99.2 96.2 Total: Expenditures 3,270,412 3,218,471 0.8 3.8 Financial Contribution 127,856 25,131 100.0 100.0 Total: 3,398,268 3,243,602
EXHIBIT VIII SUMMARY OF GROSS CAPITAL ACCOUNT EXPENDITURES (By Function) Percentage of Total Category of Capital Expenditure Amount ($000) Revised Estimate Estimate Revised 1994-95 1995-96 1996-96 1994-95 Expenditure: 30.4 30.4 Transportation Projects 82,807 94,520 24.8 11.9 Resource Development 32,459 77,217 20.6 30.2 Municipal Infrastructure 82,423 63,992 5.9 6.3 Health Facilities 17,257 18,422 6.8 6.7 Educational Facilities 18,299 21,098 6.6 6.7 Equipment Acquisitions, etc. 18,300 20,661 4.9 7.8 Public Buildings 21,259 15,365 100.0 100.0 Total: Expenditure 272,804 311,275 Source of Financing: 39.1 38.8 Government of Canada Revenues 105,749 121,736 9.0 15.1 Provincial Revenues 41,143 28,105 51.9 46.1 Financial Requirement 125,912 161,434 100.0 100.0 Total: Sources 272,804 311,275
EXHIBIT IX SUMMARY OF GROSS GOVERNMENT EXPENDITURES CURRENT AND CAPITAL (By Sector) (TOTAL EXPENDITURE: $3,543,215,900) GROSS GOVERNMENT EXPENDITURE GENERAL GOVERNMENT SECTOR Estimate Percentage Estimate Percentage 1995-96 of Total 1995-96 of Total ($000) % ($000) % Sector Expenditure Consolidated Fund General Government 942,570 26.6 Services 606,262 17.1 Resource 198,474 5.6 Executive Council 22,672 0.7 Social 2,402,172 67.8 Finance 44,179 1.2 Legislature 11,551 0.3 Total: Expenditure 3,543,216 100.0 Public Service Commission 3,297 0.1 Works, Services and Transportation 254,609 7.2 Total: General Government Sector 942,570 26.6 SOCIAL SECTOR RESOURCE SECTOR Estimate Percentage Estimate Percentage 1995-96 of Total 1995-96 of Total ($000) % ($000) % Education and Environment 7,259 0.2 Training 763,585 21.6 Fisheries, Food and Employment and Agriculture 31,197 0.9 Labour Relations 29,763 0.8 Industry, Trade Health 933,083 26.4 and Technology 68,852 1.9 Justice 114,320 3.2 Natural Resources 55,683 1.6 Municipal and Prov- Tourism, Culture incial Affairs 185,048 5.2 and Recreation 35,483 1.0 Newfoundland & Total: Resource Labrador Housing Sector 198,474 5.6 Corporation 15,244 0.4 Social Services 361,129 10.2 Total: Social Sector 2,402,172 67.8
EXHIBIT X SUMMARY OF BUDGETARY FINANCING SOURCES (For Gross Current and Capital Account Expenditures) Percentage of Total Category of Financing Amount ($000) Revised Estimate Estimate Revised Estimate 1995-96 1995-96 1994-95 Revenue Sources: 49.6 55.8 Provincial 1,977,787 1,751,429 46.5 44.2 Federal 1,567,373 1,642,014 96.1 100.0 3,545,160 3,393,443 3.9 - Budgetary Requirement - 136,303 100.0 100.0 Total: Sources 3,543,216 3,529,746 Less Budgetary Contribution: (1,944) - Gross Current and Capital Expenditures: 3,543,216 3,529,746
EXHIBIT XI SUMMARY OF SALARY COSTS BY DEPARTMENT 1995-96 and 1994-95 (Revised) 1995-96 1994-95 DEPARTMENT Estimates Revised $ $ Executive Council 12,918,500 12,441,700 Finance 10,586,600* 9,495,400 Legislature 4,958,100 5,108,500 Public Service Commission 2,076,400 1,659,300 Works, Services and Transportation 75,604,400 74,930,900 Environment 3,577,300 3,617,400 Fisheries, Food and Agriculture 11,040,300 11,968,300 Industry, Trade and Technology 5,975,000 4,795,500 Natural Resources 24,662,700 24,327,800 Tourism, Culture and Recreation 11,881,400 11,779,300 Education and Training 11,327,800 10,193,200 Employment and Labour Relations 6,933,400 6,286,000 Health 12,369,200 12,191,100 Justice 50,623,600 49,772,000 Municipal and Provincial Affairs 12,553,700 11,964,900 Social Services 44,607,300** 45,241,800** TOTAL 301,695,700 295,773,100 Less: Capital Account Salary Expenditure 7,206,500 7,372,000 Total: Current Account Salary Expenditure 294,489,200 288,401,100 * Includes $1,800,000 for the commencement of Pay Equity payments to the General Service group. ** Includes salary expenditures for employment initiatives under Department of Social Services Employment Opportunities Programs ($3,167,000,1995-96 Estimates; $4,625,800,1994-95 Revised).
EXHIBIT XII ESTIMATED INTEREST AND DEBT RETIREMENT 1995-96 Sinking Amount Interest Fund Sinking Debt Term Series Outstanding Rate Rate Interest Fund Redemption % % $ $ $ Payable in Canadian Dollars: 1975/1996 4V 1,296,000 10 1/2 1 1/2 136,100 19,400 1977/1999 4Z 12,000,000 10 2 1,200,000 1977/1998 5B 50,000,000 10 2 5,000,000 1982/2002 5K 50,000,000 14 3/4 2 7,375,000 1,000,000 1983/2003 5L 125,000,000 12 7/8 2 16,093,800 2,500,000 1984/2004 5N 100,000,000 13 1/2 2 13,500,000 2,000,000 1985/1997 5P 80,000,000 10 1/4 - 8,200,000 1986/2006 5Q 100,000,000 11 2 11,000,000 2,000,000 1986/2001 EC3 100,000,000 10 2 10,000,000 2,000,000 1987/2010 5R 100,000,000 9 3/8 2 9,375,000 2,000,000 1987/2007 EC4 75,000,000 9 1/2 2 7,125,000 1,500,000 50,000,000 1987/2007 5S 42,300,000 10.79 2 4,564,200 846,000 1988/2008 5T 100,000,000 11 1/4 2 11,250,000 2,000,000 1988/1997 J5 75,000,000 10.86 - 8,144,900 1989/2012 5U 125,000,000 11 2 13,750,000 2,500,000 1989/2014 5V 150,000,000 10 1/8 1 1/2 15,187,500 2,250,000 1991/2001 5W 58,794,000 10 1/2 - 6,173,400 1991/2021 5X 91,206,000 10.95 - 9,781,800 1992/1998 EC5 150,000,000 9 1/8 - 13,687,500 1993/2003 EC6 150,000,000 8 3/4 2 13,125,000 3,000,000 1994/2004 5Y 100,000,000 8.55 - 8,550,000 1995/1999 J12 42,000,000 FLOATING - 3,570,000 Anticipated 1995/1996 11,000,000 207,789,200 23,615,400 50,000,000
EXHIBIT XII ESTIMATED INTEREST AND DEBT RETIREMENT 1995-96 (Cont'd) Sinking Amount Interest Fund Sinking Debt Term Series Outstanding Rate Rate Interest Fund Redemption % % $ $ $ Payable in United States Dollars: 1986/1996 AE 100,000,000 8 1/2 2 11,645,000 2,740,000 1987/2007 AF 100,000,000 11 5/8 2 15,926,300 2,740,000 1989/2019 AG 150,000,000 9 1 1/2 18,495,000 3,082,500 1990/2020 AH 150,000,000 9 7/8 1/2 20,293,100 1,027,500 1990/2020 AJ 150,000,000 10 1/2 20,550,000 1,027,500 1991/2021 AK 200,000,000 9 1/2 24,660,000 1,370,000 1992/2022 AM 200,000,000 8.65 1/2 23,701,000 1,370,000 1993/2023 AN 200,000,000 7.32 3/4 20,056,800 2,055,000 1994/2001 Jll 23,500,000 FLOATING - 2,080,600 157,407,800 15,412,500 Payable in Japanese Yen: 1992/1997 J8 11,000,000,000 6.25 - 9,118,700 1994/1999 J9 4,700,000,000 4.8 - 3,000,500 1994/2001 J10 2,300,000,000 4.95 - 1,514,200 13,633,400 Payable in Swiss Francs: 1985/2000 S3 150,000,000 5 3/8 - 8,546,300 1987/2002 S4 150,000,000 5 1/8 - 8,148,800 1988/2003 S5 150,000,000 5 2 7,950,000 2,471,200 1990/1999 S6 125,000,000 7 1/2 - 9,937,500 1991/2003 S7 150,000,000 7 2 11,130,000 2,191,700 45,712,600 4,662,900 424,543,000 43,690,800 50,000,000 Canada Pension Plan: (20 Year Term) 1975/76 3A 29,429,000 8.21-9.48 2 1,867,700 1976/77 3A 30,988,000 8.73-9.25 2 2,790,000 1977/78 3A 33,037,000 8.77-9.37 2 3,001,000 1978/79 3A 36,622,000 9.35-10.16 2 3,499,500 1979/80 3A 40,070,000 9.98-12.74 2 4,242,100 1980/81 3A 42,645,000 11.61-13.46 2 5,416,800
EXHIBIT XII ESTIMATED INTEREST AND DEBT RETIREMENT 1995-96 (Cont'd) Sinking Amount Interest Fund Sinking Debt Term Series Outstanding Rate Rate Interest Fund Redemption % % $ $ $ Canada Pension Plan (Cont'd): 1981/82 3A 52,973,000 13.66-17.51 2 8,173,600 1982/83 3A 52,104,000 12.01-16.53 2 7,645,000 1983/84 3A 50,738,000 10.92-12.14 2 5,882,300 1984/85 3A 47,146,000 12.08-14.06 2 6,303,100 198,400 1985/86 3A 50,570,000 10.58-12.57 2 5,806,900 589,800 1986/87 3A 59,659,000 9.04-10.17 2 5,735,200 734,500 1987/88 3A 43,829,000 9.12-11.07 2 4,280,400 568,300 1988/89 3A 41,635,000 9.62-10.39 2 4,196,400 596,000 1989/90 3A 45,188,000 9.15-10.31 2 4,475,100 727,000 1990/91 3A 40,432,000 9.78-11.33 2 4,385,400 665,000 1991/92 3A 40,858,000 9.81-10.04 2 4,052,800 684,800 1992/93 3A 28,770,000 9.17- 9.45 2 2,695,300 493,900 84,448,600 5,257,700 Government of Canada: Winter Capital Projects 3,827,200 7.44- 9.40 - 303,400 CMHC Loans 11,762,500 5.75-14.75 - 844,000 139,400 DRIE 14,597,000 5.77- 9.72 - 1,229,700 4,786,300 2,377,100 4,925,700 TOTAL 511,368,700 48,948,500 54,925,700 EXCHANGE RATES USED IN CONVERSION U.S. 1.3700 Cdn. Yen 0.0133 Cdn. S.F. 1.0600 Cdn.
EXHIBIT XIII DETAILS OF CAPITAL EXPENDITURES ESTIMATES 1995-96 ACTIVITY GROSS RELATED NET NO. DETAILS EXPENDITURE REVENUE EXPENDITURE $ $ $ CONSOLIDATED FUND SERVICES 1.2.01 Various Facilities - Rental Purchase 77,200 - 77,200 1.3.02 Issues under Guarantee (Statutory) 1,000,000 1,000 999,000 TOTAL 1,077,200 1,000 1,076,200 FINANCE 2.2.02 Recoveries on Loans, Advances and Investments - 19,787,000 (19,787,000) TOTAL - 19,787,000 (19,787,000) WORKS, SERVICES AND TRANSPORTATION 2.2.06 Salt Storage Sheds 300,000 - 300,000 2.2.07 Alterations - Leased Accommodations 325,000 - 325,000 2.3.04 Heavy Equipment 5,500,000 125,000 5,375,000 3.2.01 Administrative Support - Road Construction 750,000 - 750,000 3.2.02 Pre-Engineering - Road Construction 650,000 - 650,000 3.2.03 Improvement and Construction - Provincial Roads 15,000,000 - 15,000,000 3.2.04 Highways - Transportation Initiative 35,000,000 35,000,000 - 3.2.05 Regional Roads - Transportation Initiative 20,000,000 20,000,000 - 3.2.06 Strategic Highway Improvement Program 4,000,000 2,000,000 2,000,000 3.2.07 Land Acquisition 5,000,000 - 5,000,000 3.3.01 Alterations to Existing Facilities 9,700,000 2,475,000 7,225,000 3.3.02 Development of New Facilities 5,350,000 1,000,000 4,350,000 3.3.03 Improvements to Land and Property 1,500,000 - 1,500,000 3.3.04 Advanced Planning - Studies 1,500,000 - 1,500,000 4.2.03 Airstrips 1,000,000 1,000,000 - 4.3.04 Ferry Terminals 500,000 - 500,000 4.3.05 Ferry Vessels 907,000 - 907,000 5.2.03 Realty Services 54,400 - 54,400 5.3.02 Park Development - C.A. Pippy Park Commission 400,000 - 400,000 TOTAL 107,436,400 61,600,000 45,836,400 FISHERIES, FOOD AND AGRICULTURE 2.1.06 Labrador Development Agreement 370,000 259,000 111,000 2.2.02 Fisheries Facilities 500,000 - 500,000 3.1.03 Middle Distance Fishing Vessels 2,161,000 - 2,161,000 5.1.04 Fishing Boat Bounties 368,000 - 368,000 6.1.04 Land Development 500,000 - 500,000 6.1.05 Green Plan 400,000 - 400,000 6.4.02 Construction and Alterations - Newfoundland Farm Products 200,000 - 200,000 6.7.03 Agri-Foods Initiatives 600,000 392,000 208,000 TOTAL 5,099,000 651,000 4,448,000
EXHIBIT XIII DETAILS OF CAPITAL EXPENDITURES (Cont'd) ESTIMATES 1995-96 ACTIVITY GROSS RELATED NET NO. DETAILS EXPENDITURE REVENUE EXPENDITURE $ $ $ INDUSTRY, TRADE AND TECHNOLOGY 3.3.04 Hibernia GBS Site Construction - Offshore Fund 4,043,000 3,032,300 1,010,700 3.4.02 Loan Fund - Enterprise Corporation Initiatives 14,650,000 16,350,000 (1,700,000) TOTAL 18,693,000 19,382,300 (689,300) NATURAL RESOURCES 3.1.04 Development of Infrastructure - Offshore Fund 3,000,000 2,250,000 750,000 4.1.09 Resource Roads Construction 2,100,000 500,000 1,600,000 5.2.02 Cottage Land Development 245,000 245,000 - TOTAL 5,345,000 2,995,000 2,350,000 TOURISM, CULTURE AND RECREATION 2.2.06 Labrador Interpretation Centre 1,845,000 1,291,500 553,500 2.3.03 Travel Generators - Marble Mountain 300,000 210,000 90,000 3.1.04 Support for Cultural Activities 120,000 - 120,000 3.3.04 Historic Sites Development 40,000 10,000 30,000 4.1.07 Park Planning and Development 500,000 4,000,000 (3,500,000) 4.1.08 National Parks 5,000 2,500 2,500 4.1.09 Park Rehabilitation 1,000,000 - 1,000,000 5.1.04 Community Sports Facilities 949,500 - 949,500 TOTAL 4,759,500 5,514,000 (754,500) EDUCATION AND TRAINING 2.1.10 Building and Equipping Schools 9,160,000 - 9,160,000 2.1.11 Transportation of School Children 1,800,000 - 1,800,000 2.2.06 Bilingual Facilities 350,000 200,000 150,000 3.1.11 Skills Training Projects - Offshore Fund 550,000 412,500 137,500 3.2.02 Furnishings and Equipment - Memorial University 2,000,000 - 2,000,000 3.2.03 Sir Wilfred Grenfell College 3,838,700 - 3,838,700 3.2.04 Various Buildings - Memorial University 1,000,000 - 1,000,000 3.3.02 Furnishings and Equipment - Provincial Colleges 2,400,000 - 2,400,000 3.3.03 Provincial College Facilities 3,400,000 3,400,000 4.2.02 Provincial Information and Library Resources Board 165,000 - 165,000 TOTAL 24,663,700 612,500 24,051,200
EXHIBIT XIII DETAILS OF CAPITAL EXPENDITURES (Cont'd) ESTIMATES 1995-96 ACTIVITY GROSS RELATED NET NO. DETAILS EXPENDITURE REVENUE EXPENDITURE $ $ $ HEALTH 4.3.01 Furnishings and Equipment - Health Care Facilities 6,000,000 - 6,000,000 4.3.02 Health Care Centres 3,550,000 210,000 3,340,000 4.3.03 Hospital Facilities 7,750,000 50,000 7,700,000 4.3.04 Newfoundland Cancer Treatment & Research Foundation - 400,000 (400,000) 4.3.05 Long Term Care Facilities 5,957,100 - 5,957,100 TOTAL 23,257,100 660,000 22,597,100 MUNICIPAL AND PROVINCIAL AFFAIRS 2.3.03 Community Water Services 450,000 30,000 420,000 2.3.04 Waste Management Facilities 543,000 10,000 533,000 2.3.05 Industrial Water Systems 550,400 - 550,400 2.3.06 Water and Sewer Servicing - Coastal Labrador 6,361,000 4,104,000 2,257,000 3.2.06 Municipal Councils 1,110,000 - 1,110,000 3.3.02 Road Construction and Paving - Debt Principal 9,133,000 50,000 9,083,000 3.3.03 Water and Sewer Systems - Debt Principal 22,220,000 120,000 22,100,000 3.3.04 Environmental Improvements 750,000 750,000 - 3.3.05 Canada-Newfoundland Infrastructure Program 40,000,000 30,000,000 10,000,000 4.1.03 Disaster Assistance for Infrastructure 356,000 275,000 81,000 4.1.04 Joint Emergency Preparedness Projects 350,000 350,000 - 4.2.03 Firefighting Vehicles and Apparatus 250,000 - 250,000 TOTAL 82,073,400 35,689,000 46,384,400 SOCIAL SERVICES 3.2.03 Youth Correction Facilities 400,000 - 400,000 TOTAL 400,000 - 400,000 TOTAL: CAPITAL ACCOUNT EXPENDITURES 272,804,300 146,891,800 125,912,500