APPENDIX I
MULTI-YEAR FINANCIAL PLANNING

 

Government has developed a three year financial plan to reach a balanced budget by 1999-2000. The plan reflects notional expenditure targets for each department, as well as overall borrowing requirements. Government is planning to make a significant contribution to the unfunded pension problem over the next three years. The overall financial objectives are outlined in Table I. Table II presents the notional departmental spending targets over the forecast period.

 

TABLE I

NEWFOUNDLAND AND LABRADOR SUMMARY OF BUDGETARY AND BORROWING REQUIREMENTS

 

                                       1996-97         1997-98         1998-99         1999-00
                                       Revised        Estimates       Forecast        Forecast
                                       ($000)          ($000)         ($000)          ($000)
BUDGETARY REQUIREMENTS
CURRENT ACCOUNT:                      
Gross Expenditure                     3,205,893      3,136,740       3,121,734       3,086,611
Related Revenues                        172,443        215,819         176,543         169,778
Net Expenditure                       3,033,450      2,920,921       2,945,191       2,916,832
Provincial and Federal Revenues	      3,134,960      3,031,400       3,076,000       3,060,000  
Financial Contribution	                101,511        110,479         130,809         143,168
CAPITAL ACCOUNT:
Gross Expenditure                       239,167        214,518         197,372         192,681
Related Revenues                        108,466        113,728          86,256          80,049
Net Expenditure	                        130,701        100,790         111,116         112,632
OTHER:
Contingency Reserve                           0         30,000          30,000          30,000
TOTAL BUDGETARY REQUIREMENTS
/(CONTRIBUTION)                          29,191         20,311          10,307            (536)
NON-BUDGETARY TRANSACTIONS
DEBT RETIREMENT:
Redemptions                             272,005        159,821         192,000         193,000
Sinking Funds                            46,076         45,831          48,000          51,000
Total Debt Retirement                   318,081        205,652         240,000         244,000
Retirement of Pension Liability	              0        196,000         113,000         123,000
TOTAL NON-BUDGETARY TRANSACTIONS        318,081        401,652         353,000         367,000
TOTAL BORROWING REQUIREMENTS            347,272        421,963         363,307         366,464

 

TABLE II

NET CURRENT AND CAPITAL ACCOUNT EXPENDITURES BY DEPARTMENT

 

                                      1996-97         1997-98         1998-99        1999-00 
GENERAL GOVERNMENT                    Revised        Estimates        Forecast       Forecast
Consolidated Fund Services (1)	    551,551,900     540,959,700     574,727,000     612,764,000
Executive Council                    20,930,900      19,503,000      19,100,000      18,000,000
Finance (2)                          34,367,200      (5,193,500)     10,700,000       8,400,000
Government Services and Lands        19,854,400      19,560,700      18,400,000      17,800,000
Legislature                           7,091,100       6,881,600       7,100,000       6,900,000
Auditor General                       2,102,100       1,937,000       1,900,000       1,800,000
Electoral Office                      1,256,000         371,400         380,000       1,200,000
Public Service Commission             1,402,900       1,281,200       1,300,000       1,200,000
Works, Services & Transportation (3)131,490,900     141,647,700     139,000,000     136,000,000
Total General Government Sector     218,495,500     185,989,100     197,880,000     191,300,000
(excluding Consolidated Fund Services)	
RESOURCE
Development and Rural Renewal         5,453,700       7,102,500       6,300,000       6,300,000
Adjustment (4)                       10,000,000	
Environment and Labour                6,546,600       5,638,200       5,500,000       5,200,000
Fisheries and Aquaculture            10,282,600      10,525,300       8,800,000       8,400,000
Forest Resources and Agrifoods       43,206,200      38,727,100      34,800,000      31,800,000
Industry Trade and Technology (5)    14,903,500      19,902,300      17,700,000      15,800,000
Mines and Energy                      8,570,300       8,037,200       8,400,000       7,600,000
Tourism, Culture and Recreation      28,896,600      25,127,000      18,700,000      16,600,000
Total Resource Sector (6)           127,859,500     115,059,600     100,200,000      91,700,000
SOCIAL
Education                           688,133,100     662,299,500     659,000,000     635,000,000
Adjustment (7)                       46,900,000	
Health                              911,177,700     913,272,400     925,000,000     922,000,000
Human Resources and Employment      372,547,600     382,335,700     397,500,000     386,000,000
Justice (8)                         112,447,300      98,879,400      94,700,000      94,100,000
Municipal and Provincial Affairs    123,437,500     116,080,800     103,700,000      95,100,000
Newfoundland and Labrador 
    Housing (9)                      11,600,000       6,835,000       3,600,000       1,500,000
Total Social Sector               2,226,243,200   2,179,702,800   2,183,500,000   2,133,700,000
TOTAL                             3,164,150,100   3,021,711,200   3,056,307,000   3,029,464,000

 

NOTES:

  1. Consolidated Fund Services include interest costs and management expenses for servicing the public debt as well as funding of pension plans for employees of Government and its agencies.
  2. 1996-97 revised for Finance includes special payments of $9 million to the Municipal Financing Corporation and $3 million for a fund to facilitate privatization/divestiture activities. Net expenditures also reflect an annual increase of $15 million in revenues from Nfld Hydro, with an additional $15 million in 1997-98 from 1996-97.
  3. For Works, Services and Transportation 1997-98 reflects increased funding for roads programs. The provision includes cashflows for committed capital projects as well as a small unallocated provision for projects to be determined.
  4. A special payment of $10 million was made in 1996-97 for the Enterprise Development Fund for strategic business development opportunities. This is included in the estimates of the Department of Development and Rural Renewal.
  5. The increased funding level for Industry, Trade and Technology in 1997-98 reflects increased cashflow under several Federal/Provincial agreements (ie. Offshore Development Fund, Strategic Investment and Industrial Development, Economic Renewal, etc.).
  6. The decline in Resource Sector funding in part reflects the conclusion of several Federal/Provincial agreements in the forecast period. Government hopes to be successful in negotiating new agreements.
  7. This expenditure increase reflected in Education for 1996-97 is due to the paydown of school board debt, additional funding for the acquisition of computers, a special payment to MUN’s Opportunity Fund and the occurrence of 27 pay periods for teachers.
  8. Increased funding is reflected in 1996-97 for Justice for payments arising from claims.
  9. The decline in the Province’s grant to Newfoundland and Labrador Housing Corporation reflects the possible devolution of social housing programs from CMHC to the Province.

 

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